Furious Derby County fans savage the club’s administrators for billing £ 2M for their work so far – saying it’s ‘laughable’ that Quantuma included charges for ‘meeting supporters’ when those who turned up were only served WATER!
- The administrators dealing with the financial crisis at Derby County have infuriated supporters after it emerged they are charging £ 2 million for services
- Supporters took to Twitter to express their amazement at the high cost
- Fans are frustrated that the amministration process has spanned seven months
- But the admins say the case was highly complex and involved detailed work
Derby County’s administrators will charge the club an estimated £ 2 million for their services prompting a furious reaction from Rams fans.
Quantuma have revealed their charges are higher than expected, during an administration process which has now lasted seven months.
The club succumbed to a financial crisis in September last year and since then the administrators have been heavily criticized for the protracted process they have overseen.
Wayne Rooney’s battling Derby County side were relegated from Championship
There have been repeated claims that a preferred bidder was due to be announced, while players were sold and more money borrowed to help keep the club afloat.
In the event it has taken until this month to appoint American Chris Kirchner as the preferred bidder. His application of him to take over Derby is now under consideration by the EFL.
The original estimates for the administrators’ costs were around £ 1.5M, half a million pounds less than the actual costs featured in the latest report.
Rams fans have ridiculed some of the reasons given for the high costs of administration after the eye-watering sums were revealed.
They include unsuccessfully challenging the EFL points deductions levied against Derby, meeting with supporters’ groups and speaking to the media.
Derby were relegated from the Championship with a 21-point deduction after defeat at QPR last week.
‘Challenging EFL points deduction was a waste of time, as everyone knew, so they can scrub that off the bill,’ tweeted one fan.
‘As for meeting stakeholders and the press… basically releasing vague holding statements every month or so and holding meetings to say there are no updates.’
There’ve been fears that Derby, a founder member of the Football League, could be liquidated
‘Challenging EFL points deduction? Are they having a laugh? They just accepted the deduction in the end and reading got theirs reduced by barely negotiating, ‘tweeted Gareth. ‘They have the negotiation skills of a 6-year-old.’
‘And the meeting the press?’ added Richie Northedge. ‘Nobody had a clue what was going on for the first 4 months!
Supporters questioned the costs associated with meeting fan groups, claiming some were held on Microsoft Teams and when they did take place face to face, attendees were only offered water.
‘Meeting stakeholder groups – assuming they’re referring to the SCG, as far as I’m aware, there was only ever 2 meetings in person (only water was provided) and the rest were done via Teams,’ claimed Liam, a member of one the club’s supporters’ groups.
Meanwhile, Kirchner has been updating supporters about his attempts to take over the club. He told them yesterday via his Twitter account that he had submitted information to the EFL for the owners ‘and directors’ test and the business plan for running Derby would be sent today.
The club has been in administration since September – Quantuma has now appointed a preferred bidder
Kirchner has said he intends to settle with creditors in line with the EFL insolvency rules in order to avoid any further points deductions for the club next season.
Football finance expert, Kieran Maguire, said the costs of taking over Derby had increased during the administration process. As well as the administrators’ fees, legal and other costs would mean the price for exiting administration would be up to £ 4M.
In addition, he said on Twitter: ‘MSD Holdings have lent a further £ 3.5m to fund the administrators, taking total owed to £ 24m. HMRC total claim is £ 36m, up from £ 28m. ‘
Derby County went into administration after the former owner, Mel Morris, gambled on the team reaching the Premier League. He ran up huge debts to realize the dream of promotion and when that did not happen the club could not meet its obligations.
A hugely complicating factor in the administration process was the fact that the club did not own the stadium, Pride Park, or the Moor Farm training ground, which remained in the ownership of Morris.
Quantuma told the BBC that it considered the case to be ‘of high complexity’ with extra responsibilities having fallen on them and their staff.
A deal must still be done to allow Derby to play at Pride Park for the Kirchner takeover to succeed.