Derby County FC lives to play another day
Derby County FC lives to play another day, whilst the EFL proposes an approved panel of insolvency practitioners to handle football club insolvencies
The EFL have announced this week that Derby County FC has officially exited administration, its assets having been transferred to new owners, Clowes Developments (UK) Limited. Whilst remaining subject to a number of restrictions including in relation to transfer fees, players’ wages and agents’ fees, Derby County FC , within the confines of an EFL approved business plan, is now permitted to sign new players in readiness for the start of the new season.
Following the article which I wrote in May, the EFL have now announced plans to create a panel of approved administrators with the effect that, going forward, an Administrator of a football club must in effect be approved by the EFL. Fans are reportedly concerned that this proposal is a direct reaction to the challenge brought by the administrators of Derby County FC to the 21 point penalty imposed by the EFL and that the operation of an approved panel may reduce instances of challenge to penalties imposed by the EFL in the future. On the other hand, however, it is not difficult to see the potential costs and time saving benefits if, in the future, football club administrations are handled by insolvency practitioners with specific football insolvency experience. A link to the full article published in R3 Recovery News (June 2022 edition) appears here:
If you would like to know more about this subject, in the first instance, please contact John Bradshaw in our Business Services Team.
John Bradshaw is a partner and specialist in Insolvency & Business Recovery at Barker Gotelee Solicitors.