Derby are clearly a big club

Last season was the third for Derby County under the ownership of David Clowes, a local businessman and lifelong supporter, who bought the club out of administration in July 2022, splashing out around £55m in the process. As Clowes said, his purchase had “ended nine months of uncertainty and fear over the future of our club.”  The authoritative Swiss Ramble analyses the 2023/24 accounts.

Following promotion to the Championship, Derby’s pre-tax loss narrowed from £14.2m to £11.1m. Revenue shot up £12.5m (64%) from £19.4m to a club record £31.9m, but this was more than offset by the increased cost of competing in the higher division, as operating expenses rose £15.0m (39%) from £38.2m to £53.2m. The net improvement was thus thanks to a significant increase in profit on player sales, which more than doubled from £4.6m to £10.3m.

The main driver of Derby’s revenue growth was the higher TV deal in the Championship, which led to broadcasting income more than quadrupling from £2.9m to £12.0m. There was also good growth elsewhere, as ticketing rose £2.0m (26%) from £7.6m to £9.6m, while commercial was up £1.4m (16%) from £8.9m to £10.3m.

In the three seasons since coming out of administration, Derby have lost £45.7m before tax, though the good news is that the losses have now fallen two years in a row.

After promotion to the Championship, Derby’s average attendance increased by 6% from 27,278 to 29,018, which means that this has bounced back from the 22,214 low in the Championship in 2021/22, thanks to renewed enthusiasm following the exit from administration.  Crowds have dropped around 3,000 from over 32,000 in the Premier League, though they are still excellent for a team outside the top flight.

They were in a class of their own in League One, having the highest average attendance in England’s third tier in both seasons, ahead of Ipswich Town and Sheffield Wednesday in 2022/23, then Bolton Wanderers and Portsmouth in 2023/24.  Even more impressive is the fact that Derby had the 19th highest crowds in all of England last season, ahead of four clubs in the Premier League.

As would be expected following promotion, Derby’s wages rose £9.5m (43%) from £22.0m to £31.5m, as the club needed to pay more to be competitive in the higher division, which means that the wage bill has nearly doubled in just two years.  Part of Derby’s recent success has been driven by spending (relatively) big, but it should be also acknowledged that they have spent well. Many other clubs have splashed the cash, but have little to show for it.

Since returning from administration, all of Derby’s £64.7m available cash has come from the owner. This was largely used to cover £43.4m operating losses, while £13.5m was spent on purchasing the business. The club has also invested £3.2m in infrastructure and spent £2.5m on player purchases (net).

Whether Clowes has the means to continue with this level of financial support is a reasonable question, especially as there have been a few reports about the club holding talks with interested parties.

Any new investors would have to align with the conservative approach followed by Clowes, “Derby County will always live within its means and will not ever enter a period of ‘boom or bust’, which had such dramatic ramifications for the club in the recent past.”

As evidenced by the high crowds, it is clear that we are talking about a big club here, but the odds are that patience will be required before Derby can regain their place at the top table.