Derby County administrators have lodged an appeal against an automatic 12-point deduction imposed on the club
- EFL has announced the administrators have lodged an appeal over a deduction
- Current points total will stay in place while the matter goes to arbitration
- A further points deduction looms after EFL found Derby breached financial rules
- Administrators say they lodged the appeal to highlight the impact of Covid in the club’s financial situation
Derby County have lodged an appeal against the 12-point deduction imposed on the club as a result of it going into administration.
The administrators, Quantuma, who were appointed on September 22, have objected to the deduction automatically imposed by the EFL, under league rules.
The penalty sent the Rams to the bottom of the Championship and staring at relegation, especially as they are expected to be docked a further nine points for historical allegations of breaking spending rules.
In a statement issued today, the EFL said: ‘The Administrators at Derby County have lodged an appeal against the 12-point deduction imposed on the Club’s 2021/22 season total on 22 September 2021.
The administrators at Derby County have lodged an appeal over a 12-point deduction
‘As a consequence, this matter has been referred to an independent arbitration panel who will consider representations from both parties before making a determination.
‘At this current time the club’s points total in the Championship table will remain unchanged.’
The club’s former owner, Mel Morris, put Derby County into administration as debts mounted.
He revealed the club was losing between £1.3m and £1.5m per month. It is believed the club has problem debts of around £60 million with more money owed to Morris.
After their appointment, the administrators highlighted the fact that Derby had been hit hard by Covid, but as a consequence of a dispute with the EFL over the
Explaining the decision to appeal against the 12-point deduction, Andrew Hosking of Quantuma, told Sportsmail: ‘It is simply that there is no question that a club with a large fan base such as Derby was badly affected by Covid and we wish to bring that to the attention of the tribunal.’
Derby County’s administrators have received many expressions of interest’ in buying the club
In normal times, Derby benefits from an average attendance of 27,000 fans, the administrator said.
Derby did not benefit from an EFL Covid lending facility this summer, which provided £8.3 million loans to rival clubs. The EFL told the Rams Supporters’ Trust last week the club did not complete the application process.
Following the points deduction, Wayne Rooney’s side sit bottom of the Championship with just two points following the deduction, having won three, drawn three and lost five of their 11 games.
Without the deduction the Rams would be 14th in the table.
A further nine-point deduction is also looming for the club after the EFL concluded it had not followed the league’s financial rules.
Rooney, whose side have battled hard on the pitch this season, has spoken openly of playing in League One next season if the points deduction goes beyond the 12 automatically imposed under EFL rules when the club entered administration.
Wayne Rooney faces an uphill battle in staving off relegation following the points deduction
‘If the penalty is 12 points, we have a chance [of staying up]. If it goes beyond that we might have to start preparing for League One as well,’ Rooney said last month.
Retaining Championship status is crucial in Derby’s search for a buyer. The level of the club’s debts mean that they would be expected to outweigh Derby’s market value in the second tier, let alone League One, making it much harder to sell.
The Rams announced on Friday September 17 night they had made the ‘tough decision’ to file notice to appoint administrators amid mounting financial problems.
The Rams blamed their financial problems on the consequences of the coronavirus pandemic and the ongoing EFL inquiry into their accounts, which the club said had deterred a takeover in January 2020.
However, other EFL clubs have been quick to highlight the costs that Derby have allowed to mount as they made repeated bids for promotion, which left the club with unsustainable debts after the strategy failed to deliver Premier League status.
The administrators say they are confident they can find a buyer for Derby before the transfer window opens in January, which they hope would prevent a fire sale of the club’s best talent.
Derby County are fighting hard but manager Wayne Rooney has warned his side will not be able to overcome multiple points deductions