Championship side Derby County are facing a 12-point deduction after confirmation that the club, its holding company and all its subsidiaries had filed ‘notices of intention to appoint administrators.’
In a statement, the club said: “Last week, it became clear that the process which has been underway to identify a purchaser for the Club likely would not be productive over the near term, despite the number of negotiations with credible parties.”
Shifting a lot of the blame on the effects of the Covid-19 pandemic, the statement added: “The irony is that the Club’s financial forecasts show the emergence of a financially sustainable picture. Absent the COVID-19 pandemic, we undoubtedly would have been able to trade through.”
The club took a circa £20 million hit as a result of the pandemic, and was therefore not able to fulfil its day-to-day financial obligations.
It went on to say: “We cannot stress enough how devastating it is to be forced into this position. We all – the owner, the members of the board, and our staff – are true Derby County supporters. We will continue our work under the stewardship of the Administrators to help facilitate their process and their effort to find a purchaser.”
A recent statement from the English Football League confirmed the club would be hit with a 12-point deduction once applications for administration had been received.
This will put Wayne Rooney’s side, currently 16th, rock bottom of the Championship on a negative five points.