Derby County have a 50/50 chance of avoiding liquidation following the Rams’ announcement that they intend to appoint administrators.
That’s according to a report by The Athletic, who revealed that a source close to the club believes that there is a 50/50 chance the club survives after being entered into administration, while another claimed that they could not see how the Rams could possibly find a way out of their current financial mess.
This is because any potential buyer of the club would be required to pay around £60m to clear Derby’s current debts – something that is made up of £10m owed to creditors, £20m owed to an American private equity firm and £30m owed in tax – before even spending a penny on the rebuilding of the club.
It will not need explaining to Derby fans just how dire their club’s current financial situation is, but the sheer amount of money the Rams owe is something that should have the Pride Park faithful extremely worried.
As the sources mentioned above suggest, there would appear to be very few prospective buyers willing to write off the club’s current £60m debt just to keep Derby functioning, let alone one who would do this and then subsequently invest a significant amount of money in order to make the club competitive again – as the rewards would simply not appear to be worth the risk.
Indeed, with Wayne Rooney’s side facing an EFL standard 12-point deduction from their current tally for the club’s appointment of administrators, as well as a nine-point deduction for a separate breach of financial rules, it would seem as if the club’s relegation to League One is all but a certainty at the end of this season – if they manage to survive that long.
As such, other than for love of the club, there would seem very little reason for anyone to purchase Derby, something that does not bode well for the future of the Rams whatsoever.