Derby enter administration and could plummet to bottom of Championship as EFL threaten 12-point deduction with Rams already under transfer embargo and looking at separate points penalty

Derby have announced they are entering administration and now face a 12-point deduction.

The Championship club issued a statement on which revealed directors ‘had no choice’ but to make the decision.

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It’s a sad state of affairs for Derby
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Rooney has had no luck since taking the Derby job

The Rams said the move was due to ‘a number of developments’, including a failure to identify new owners and the continuing impact of Covid-19 on revenue streams.

The statement read: “Last week, it became clear that the process which has been underway to identify a purchaser for the club likely would not be productive over the near term, despite the number of negotiations with credible parties.

“Because the COVID-19 pandemic has had a severe impact on the revenues and profits of all of its businesses, the club has been unable to service its day-to-day financial obligations. The directors had no choice but to make the tough decision to take this action and protect the Club.”

Derby will be docked 12 points unless they launch a successful appeal.

The Rams, who remain under a transfer embargo, are already facing a separate and additional points penalty for breaking the EFL’s financial rules.

On Friday the EFL confirmed the imminent sanction, saying in a statement: “The EFL can tonight confirm that the club will be subject to an insolvency event under the terms of the EFL’s regulations.

“As a result, the club faces a 12-point deduction. Once the EFL has received formal notification of the application, the deduction will be applied.”

The club could conceivably appeal citing extenuating circumstances, given their insistence that their plight has been a direct result of the unprecedented Covid climate.

The statement continued: “The irony is that the club’s financial forecasts show the emergence of a financially sustainable picture. Absent the COVID-19 pandemic, we undoubtedly would have been able to trade through.

“However, the impact of COVID-19 pandemic and the unpredictability it has created represents too much of a strain.

“As the COVID-19 pandemic and lock down tightened their grip, the club’s revenues and cash flow took a circa £20 million hit.”