Derby County FC set to go into administration
The club's board of directors have called the decision 'devastating'
The club's board of directors issued a statement this evening that the holding company of the group, and the additional companies have filed notices of intention to appoint administrators.
The effects of Covid-19 has severely impacted the club's revenues and has meant that it has become financially unsustainable, and the cash flow has taken a ÂŁ20 million circa hit as a result of lockdowns.
It has been said that 'the directors had no choice but to make the tough decision to take this action and protect the Club.'
The decision has also been described as 'devastating' by the board of directors who are determined to find a purchaser having reached a tipping point.
The board of directors stated:
"This action was made necessary by a number of developments. 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."
"Because the COVID-19 pandemic has had a severe impact on the revenues and profits of all of its businesses, the Club has been unable to service its day-to-day financial obligations. The directors had no choice but to make the tough decision to take this action and protect the Club."
"We know this situation will raise concerns among our supporters. The Club respectfully asks that our supporters continue to show their support, especially to the playing staff under Wayne Rooney and our employees who have all been outstanding during these difficult times. This ongoing support in turn will be instrumental as we seek to find a new owner to take the Club forward."
"We appeal to the EFL to now assist the Club and the Administrators in any way they can in the effort to find a purchaser."
"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."
They made the announcement this evening in a statement on their website.