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Derby still needs a long-term solution

The original deadline of February 1, imposed by the EFL for Derby’s administrators to source funding until the end of the season, has been extended by a month.  The sense of immediate peril has been eased but concerns persist that the extension to the deadline is just the can being kicked down the road. Derby fans remain no closer to hearing the long-term solution to their club’s uncertain future than they were in the aftermath of the EFL meeting two weeks ago that had promised so much.

Quantuma had initial hopes of announcing a preferred bidder before the new year and having them officially in place before the end of the January transfer window. However, several issues have prevented it from finding a new owner. Since Chris Kirchner’s dramatic exit from the fray, the Binnie family from the US, founders of private investment firm Carlisle Capital, is the only bidder to go public with its interest. It submitted a £28 million bid to buy Derby last Friday, the only offer made public. However, a consortium headed by former Derby chairman Andy Appleby and former Wolves CEO Jez Moxey remains in the mix.

The Derby fanbase is understandably split over the third potential bidder — former Newcastle United owner Mike Ashley, renowned as a master of the insolvency process but equally notorious for draining the soul out of the Tyneside club with little investment in infrastructure and playing staff. But, as is the severity of the situation, most Derby fans would take all comers willing to stump up the cash.

The Athletic understand that Quantuma has saved enough money through player sales, including the recent departures of Dylan Williams and Graeme Shinnie for fees, and cost-cutting methods to sustain the club until February.

Quantuma’s confidence that Derby will exit administration intact derives from noting a provision in the Corporate Insolvency and Governance Act 2020 that appears to enable them to write off a significant chunk of their debts, including £29 million to HMRC. Quantuma’s plan to offer the taxman the same 25 per cent of what is owed to the unsecured creditors makes Derby a much more attractive option for buyers and explains why the Binnie family has bid only £28 million.

However, the law has changed since the last football administration, and the EFL is yet to update its rule book, so the method is not yet approved. The latest update is that the EFL has offered to send the matter to arbitration.

In its statement confirming the month-long extension, Quantuma said: “The additional month will provide time to seek clarity on the claims from Middlesbrough and Wycombe.” These remain significant stumbling blocks, cited by administrators last week as a “key issue for interested parties”. Carlisle Capital made its bid in full knowledge of the claims, suggesting it will not prevent a bidder from making progress. 

 

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