Derby County going in to admin

I see the Daily Mail (and others) are reporting Derby are on the brink of liquidation unless the HMRC write off approximately £20m owed to them. That clearly cannot happen. It would set a hugely dangerous precedent within football.

If true I would assume they would be expelled from the league leaving 91 clubs………
      ………only one way to fill the gap - top 2 in our league plus 1 via the play-offs.


Yo Ho Ho.

Quoted from GollyGTFC

I see the Daily Mail (and others) are reporting Derby are on the brink of liquidation unless the HMRC write off approximately £20m owed to them. That clearly cannot happen. It would set a hugely dangerous precedent within football.

You’d think but then again nothing would surprise me in a year or two when billions has been siphoned in to the pockets of chums of ministers…

If they are liquidated be sure it’s one down and two up

No get out of jail card here

Quoted from HistonMariner

If true I would assume they would be expelled from the league leaving 91 clubs………
      ………only one way to fill the gap - top 2 in our league plus 1 via the play-offs.


Yo Ho Ho.

Unfortunately it will be one less relegation from every league. The pyramid seems to favour rewarding failure.

Quoted from IlkleyMariner

Not covid
Just irresponsible financial management bordering on the illegal.

Along with all these clubs that have cheated and avoided paying creditors, how many businesses have been affected by irresponsible football clubs.

In 2000, ITV Digital bought the broadcasting rights to Football League and League Cup matches in a three-year, £315m deal.[citation needed] In March 2002, the company went bankrupt owing the League £180 million which it said it "cannot afford to pay".[4] Because of this, many Football League clubs had financial problems and entered administration.[5][6]

Before the implementation of a points deduction it was perceived that clubs had "manipulated and abused [administration] as a way of shedding debts then restructuring, and borrowing again once the hapless creditors had been fobbed off with their 8p in the pound".[2] In September 2003, it was proposed that clubs entering administration would be docked 10 points. A 'fit and proper persons' test was also introduced in an attempt to prevent fraudulent activities. If a person was previously director at a club which was in "administration twice during a five-year period" or at "two different clubs that have each gone into administration in a five-year period" then they would be prevented from becoming the controlling shareholder of a Football League club.[7] A 'fit and proper persons' test was also introduced for directors of Premier League clubs.[8] In November 2009, Stephen Vaughan, Sr. became the first director to fail the 'fit and proper persons' test.[9]

To ease financial problems for clubs that had been relegated, "parachute payments" were introduced to give time to adapt to the financial gulf between divisions.[10] The deductions of 10 points in the Football League and 9 points in the Premier League were ratified in 2004, with the rule in place from the start of the 2004–05 season.[11][12] The League also adopted rules that prevented any side from being in administration for either two successive seasons or eighteen consecutive months.[13] The reason for the deduction being a point less in the Premier League was that the teams play eight fewer fixtures than Football League clubs.[12] The first club to incur this new penalty were League One side Wrexham F.C. who entered administration on 3 December 2004.[13]

Leeds United filed for administration with only a few days remaining in the 2006–07 season, which automatically triggered a 10-point penalty. This placed Leeds at the bottom of the table and relegated the club, but they were extremely likely to have been relegated anyway. By entering administration during the 2006–07 season, they hoped to avoid starting the 2007–08 season on −10 points. The following week, Boston United entered administration in the final minutes of a defeat to Wrexham which ensured they were relegated to the Football Conference, meaning they likewise avoided starting the following season on -10 points (though they would find themselves being double-relegated to the Conference North for unrelated reasons).[14] The Football League saw both cases as clubs trying to exploit a loophole, and changed the rules. From 2007–08, any club entering administration after the fourth Thursday in March would have their 10-point deduction suspended until the following season. If the club is relegated the points will be deducted from their tally at the start of next season. If the club stays up the 10 points will be taken off their final total. [15]

On 26 February 2010, Portsmouth became the first Premier League club to enter administration.[16]
Football creditors rule

In a situation of insolvency, the "football creditors rule" means that debts to other clubs or players are prioritised and must be paid in full before the club is eligible to compete again in the league.[17] The Enterprise Act 2002 made reforms to the insolvency act and, from 15 September 2003, the altered procedures for administration were implemented.[18] Most notably it abolished the Crown's preferential right to recover unpaid taxes ahead of other creditors.[19] As such, HM Revenue and Customs (HMRC) is now often not paid in full (between 2003 and 2010, outstanding unpaid taxes to the HMRC amounted to £30 million).[20] This legality of the football creditors rule was challenged in 2004 in Inland Revenue Commissioners v The Wimbledon Football Club Ltd. However, it was found that "full payment to football creditors (out of third party funds) ahead of preferential creditors did not infringe the provisions of section s4(4)(a) of the Act" and "differential treatment may be necessary to secure the continuation of the company's business and may be regarded as supportable".[21]

In 2011 HMRC brought another challenge to the football creditors rule in the High Court, this time on the basis that it breached fundamental principles of insolvency law, including the pari passu rule that all unsecured creditors should be paid on a proportionate basis. However, in May 2012 the court rejected the challenge as it found that the rule was not a deliberate evasion of insolvency law.[22]

List of clubs in England and Wales that have entered administration or CVA

Bradford City, Charlton Athletic, Middlesborough, Tranmere Rovers, Newport County, Walsall, Northampton Town, Kettering Town, Aldershot, Maidstone United, Hartlepool United, Barnet, Exeter City, Gillingham, Doncaster Rovers, Millwall, Bournemouth, Crystal Palace, Chester City,  
Portsmouth, Hull City, Queens Park Rangers, Bury, Halifax Town, Bradford City, Notts County, Barnsley, Leicester City, Port Vale, York City, Derby County, Ipswich Town, Wimbledon, Darlington, Bradford City, Wrexham, Cambridge United, Rotherham United, Crawley Town, Boston United, Leeds United, Luton Town −10 pts −20 pts, Bournemouth  −10 pts −17 pts, Rotherham United (Old company dissolved) −10 pts, −17 pts, Halifax Town −10 pts, Darlington −10 pts, Southampton −10 pts, Stockport County −10 pts, Chester City Dissolved −25 pts, Northwich Victoria −10 pts, Farsley Celtic Dissolved −10 pts, Salisbury City −10 pts, Weymouth None, Crystal Palace −10 pts, Portsmouth −9 pts, Plymouth Argyle −10 pts, Rushden and Diamonds Dissolved None, Darlington Dissolved     −10 pts, Portsmouth −10 pts, Port Vale −10 pts, Coventry City (Old company dissolved) −10 pts −10 pts, Aldershot Town -10 pts,  Bolton Wanderers (Old company in liquidation) −12 pts,  
Bury new CVA sought −12 pts, Rhyl Dissolved None, Wigan Athletic (Old company in liquidation) −12 pts, Bury N/A, Derby County −12 pts.

I thought that Leicester and Swindon had entetred into adminstration

Leicester are on the list

Things are getting very serious at Derby County. A lot of mud being thrown around, especially by the administrators. Possibly less than 2 weeks away from liquidation.

Quoted from GollyGTFC

Things are getting very serious at Derby County. A lot of mud being thrown around, especially by the administrators. Possibly less than 2 weeks away from liquidation.

Middlesbrough and Wycombe are holding it up by wanting compensation for missing out on play offs and getting relegated at the expense of Derby. Seems pretty futile to me. Although there is some precedent in Sheff Utd getting paid off by West Ham after they broke the rules with Tevez and Mascherano signings. It was settled out of court though, so not sure a court is going to rule in favour when they've already been punished by the league.

I hope they get liquidated. None of their fans shed a tear for anyone else when they were swizzing their way through the season with bent stadium and sponsorship deals. If they’d gone up under Lampard they’d be in the Prem and would effectively be untouchable, as they knew, sooooo fúck em!