September 22, (THEWILL) –Â Derby County Football Club has gone into administration and docked 12 points by the English Football League (EFL).
As a legal concept, “going into administration” is a procedure under the insolvency laws of many common law jurisdictions. It functions as a rescue mechanism for insolvent entities, allowing them to carry on running their business.
In a statement released by the club last Friday, Derby confirmed that they had decided to call in administrators, in light of the adverse effect the pandemic had on club finances.
On Wednesday, the club appointed Quantuma managing directors Andrew Hosking, Carl Jackson and Andrew Andronikou as joint administrators. This followed the mandatory 12-point deduction by the EFL.
In a statement on the club’s official website, Hosking said: “I can confirm that Andrew Andronikou, Carl Jackson and I were appointed joint administrators of Derby County Football Club today.
“COVID-19 has had a significant impact on the finances of the club and its long-term ability to continue in its current form. We recognise that with the commencement of the 2021/2022 season last month, this news will be of concern to stakeholders and fans, in addition to the city of Derby and the wider football community.
“We are in the early stages of assessing the options available to the club and would invite any interested parties to come forward.
“Our immediate objectives are to ensure the club completes all its fixtures in the Championship this season and finding interested parties to safeguard the club and its employees.”
The 12-point deduction aside, Derby could face a further nine-point deduction for an alleged breach of profit and sustainability rules. The club had been previously fined £100,000 and reprimanded in July this year for the breach.
Jude Obafemi is a versatile senior Correspondent at THEWILL Newspapers, excelling in sourcing, researching, and delivering sports news stories for both print and digital publications.
