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EFL statement on Derby, Middlesbrough and Wycombe causes uproar

The latest EFL statement on Derby, Middlesbrough and Wycombe causes uproar with fans losing patience waiting for a resolution to be found.

EFL says that Derby must not use insolvency laws to deal with some of their outstanding debts – should they wish to come out of administration.

The Championship club are the subject of unresolved compensation claims from Middlesbrough and Wycombe but Derby say both should not be treated as “football-related debts”.

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Quantuma have been given until the start of March to come up with proof of how the Rams will be funded for the rest of the season.

That deadline was extended from the 1st of February last week with Derby being in administration since September and remain in the Championship relegation zone, incredibly however find themselves just seven points from safety, having already been deducted 21 points this season.

One of the club’s potential buyers fears Derby are headed for liquidation says BBC Sport.

The Binnie family submitted a formal £28m takeover offer last month, but that price did not include the club’s stadium.

Derby’s Pride Park stadium is still owned by Mel Morris, who put Derby into administration. It also has a charge in excess of £20m to American finance company MSD, for which Morris is the guarantor.

It has been suggested a combined payment of about £7million would sort the issues involving Middlesbrough and Wycombe, who both claim to have lost out because of Derby’s financial rule breaches.

Boro missed out on the playoffs in 2019 while the Chairboys would’ve stayed up last season had the cases against Derby, that led to them being deducted nine points this term, been done earlier.

This is putting the Binnie family off, reluctant to commit to paying the settlement, as well as the additional cost of buying both the club and the stadium.

EFL STATEMENT:

The EFL Board met today and received an update in respect of Derby County FC.

Over the last few weeks, the EFL has engaged proactively with the Club’s Administrators and other key stakeholders including the local authority, MPs and the Rams Trust as we seek to assist the Club in its efforts to exit from administration in accordance with the requirements of the League’s Insolvency Policy.

The EFL’s Insolvency Policy is designed to offer guidance to Clubs on how the board might seek to deal with any Club in administration. That policy, which has been accepted by all 72 Clubs, describes how the Members agreed ‘that the starting point is that no Club should gain (or seek to gain) any advantage within the context of professional football over other Clubs by not paying all its creditors in full at all times.’

In this case, Derby County is seeking to use insolvency legislation to avoid having to defend the claims of Middlesbrough FC (which commenced initially in January 2021) and Wycombe Wanderers FC. Derby County considers those claims should not be treated as football related debts and that it would be wrong for the EFL to require the Club to have to continue to defend the claims as a condition of continuing membership in circumstances where they have been compromised by way of a restructuring plan. The EFL does not agree with that analysis.

At the request of the Administrators, and in line with commitments given at last week’s meeting with local politicians, the EFL has provided a further clear statement to Quantuma of its position on the application of the Insolvency Policy, so as to enable them to apply to the High Court or engage in Arbitration to have that issue determined. It is now for the Administrators to determine how they wish to move this matter forward and we remain willing to expedite any process, as necessary.

The fact remains that the Club is suffering from critical legacy debt issues that reach into tens of millions, all of which need to be resolved if a solution is to be found. That also includes monies owed to HMRC and the loans from MSD secured against Club assets and the Stadium.

The EFL has previously requested mediation between the two Clubs and the Administrators and is today inviting all relevant and associated parties involved to enter formal collaborative negotiations to actively seek out the compromises and solutions required to ensure that Derby County has a long-term future.

For the avoidance of any doubt the EFL is requesting the attendance of Administrators and the following stakeholders to participate: the current highest bidder(s), Middlesbrough FC, Wycombe Wanderers FC, Mel Morris, MSD Partners and HMRC.

The EFL will endeavour to provide updates on any progress achieved as a result of this request and any subsequent discussions in due course, whilst also continuing to maintain our commitment to transparency in our dealings with the politicians and local authority officials that make up ‘Team Derby’ alongside direct engagement with Derby County Supporters’ groups and the FSA.

WYCOMBE CHAIRMAN’S STATEMENT:

Rob Couhig said: “Since last November, we have asked the administrators for a meeting to conduct good faith negotiations to resolve the issue between the two clubs.

“Despite repeated requests, we have never heard a word from them. Perhaps, now that the request has come from the EFL, they will finally agree to meet and try to come to a responsible commercial solution.

“As soon as I am told when and where the mediation will take place, I will fly back to the UK and personally attend.”

As mentioned, the EFL statement on Derby, Middlesbrough and Wycombe causes uproar with fans, see what they said below…

@Forest_No_22: Remember that time HMRC compromised for Woolworths, Debenhams, BHS, Toys R Us, Blockbuster and their tens of thousands of employees? No me neither

@untried_sam: Sounds like this was drafted by Steve Gibson. Better headline: @EFL continue to side with @Boro @wwfcofficial to try to ensure the liquidation of Derby County football club.

@BelvoirRam: The fact that the EFL is even entertaining these wild claims from Boro and Wycombe is a complete dereliction of duty and could force the club into liquidation when there are buyers waiting in the wings. It could open the trap door to hell with regards to spurious future claims.

@T__Rice: Officially backing Boro & Wycombe’s nonsensical claims over aiding Derby out of administration and letting new owners deal with the claims afterwards (as admins proposed)… And people wonder how Bury were allowed to fold. This stinks of corruption.

@Adam84501837: So any club can raise a claim and the EFL will note these as football creditors 🤷‍♂️ Not a chance, no surprise they aren’t making a decision, they are appeasing clubs to save their own skin. They really aren’t fit for purpose.

@M_Watson__: A month ago the efl said they weren’t getting involved and now they agree they are footballing debts that haven’t been heard. For all those saying just liquidate them doesn’t understand what fans are going through hope this never happens to any of their clubs

@tonydcfc73: The @efl will get sued massively in future for this, calling shots that are out of their jurisdiction. Clear lack of legal expertise, probably the same legal team that valued pride park at £20m initially. Any preferred bidder taking over will sue them for all the costs

@chaddram: We don’t owe boro or Wycombe a fucking penny this is a joke.

@channy_gail: Not fit for purpose 😡

@LavigneJK: Take our chances with the High Court thanks. Better than any process involving @EFL.

@the_cowch: The statement here makes clear that the mendacious claims by Middlesbrough and Wycombe are justified. I think there needs to be a counter legal claim against the league here as they have clearly reached a decision without following due process

@Bretheren: How can the Boro and Wycombe claims be “football related debt”? There is no debt owed

@UrwinPeter: As a Boro fan and I know I won’t be popular but just let it go, we were piss poor that season anyway (amongst others) there’s no satisfaction seeing other fans suffer

@JWPerkinsUK: So 69 other members should now be asking lawyers to review P&S breaches in the last five years to understand the possible* impact on their own team? Yes?

@Jonnyram1976: Can the EFL explain if they are comfortable setting precedence that any club can sue another based on fictitious ’what if’ scenarios and accept the can of worms this creates?

@1JoeJennings1: Derby keep saying that the claims against them don’t have merit but ALL clubs have the ability to bring a case of arbitration against another because ALL clubs agreed this could be done, including Derby. They helped make the rule and now it’s going against them they dont like it

@wwitt1978: That was the crux of why we @TranmereRovers couldn’t really present a legal challenge, as it was all about the unknowns. The known at the time of standings on curbing the 2019/20 season.. @wwfcofficial got an advantage. They were promoted via taking the place of a higher team.

@MrJaques1: DCFC owe HMRC, MSD+other creditors that potential new owners know about-can’t shy away from that. New owner would take that on. But I just can’t see how unfounded claims from 2 other clubs (spurious or legitimate) can be seen as creditors + be holding this up. It’s a scandal.

@iainjennison: Wait for the fall out if a precedence is set. Clubs suing each other left right and centre. Total carnage. Well done @efl for sitting on the fence

@AlexCTSkills: The @EFL say they have ‘creditability’ and ‘progress’ as values yet this statement reads “we’ll let a founder member be liquidated if they can’t sort it amongst themselves”. The silence of independent @EFL board members Debbie Jevans and @SimonBazalgette is damning and deafening.

@robertkilcoyne2: Even if Derby County FC survives (very unlikely now) Parliament must introduce legislation ASAP to create an independent regulator for football, with the EFL losing all of its regulatory powers and having its entire board replaced by independent directors @tracey_crouch

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