Derby County and the threat of liquidation – The Athletic


In just over two months since Carl Jackson and Andrew Hosking were appointed joint directors, Derby County fans have grown accustomed to the punches. There have been domestic and international millionaires linked to buying the club’s most high-profile Chris Kirchner, but little clarity remains on what lies ahead.

While the prospect of a Derby loss wasn’t bad news, a 12 point deduction followed, putting the club at the bottom of the league and with negative points. After a strong response on the pitch, including a five-game unbeaten streak, Wayne Rooney and his players remained optimistic that the deficit was surmountable. But with the misdeeds of the past coming back to haunt them, Derby incurred an additional penalty of nine points. As performances and results dried up, this second deduction sent the club down to negative points for the second time in less than two months, effectively relegating them to League One.

In the aftermath of that heavy blow, the victory over Bournemouth and the draw against the division’s other main contenders for promotion, Fulham, almost wiped out the inevitable prospect of third-tier football next August. However, with recent news suggesting that Derby may soon be obsolete unless they strike an unlikely deal with HMRC – the UK tax office – a first season outside of the first two levels since 1985-86 threatens to be the least of their problems.

Gerald Krasner, of Begbies Traynor, is an experienced insolvency practitioner and former director of Wigan Athletic, Bournemouth and Port Vale.

In conversation with The Athletic, he clarified the prospect of liquidation and the different stages of the administrative process.

What is the process for finding a buyer during administration?

“First of all, you advertise it. You put together a sales pack, and then it kicks off.

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