Fascinating listen about Derby on Talksport

Restarting a business with the same or a similar name by the same director as one that was liquidated is a criminal offence under sec 216 Insolvency Act 1986. However, Derby are not in liquidation. They have become insolvent but have entered administration. This temporarily prevents creditors from taking action to place them in liquidation. An administrator will attempt to see a route to keep the company trading whilst securing the best deal for creditors. Administrators I have speoken to are also acutely aware of preserving jobs if they can. What happens in a lot of administrations and especially in football is that there is a pre-pack buy out usually by management or a buyer waiting in the wings. This will happen with Derby and they will form a new company which acquires the assets of what we know as DCFC (or WRDCFC). What will then happen is that buy out will offer limited funds to pay a dividend to all creditors. As a condition of doing so, they will insist on being able to treat footballing creditors differently and pay them off in full as that is the only way to reclaim the suspended share in the league (an asset the League itself apparenly consistently refuse to help anybody value). Hence Harry Redknap dined high on the hog from Portsmouth whilst the St john's ambulance got 2p in the £. The existing company that operates DCFC will then be liquidated and a new one set up (I think we are operated by something like Barnsley FC 2002). To my mind the whole practice demeans football and we have got to a stage where the punishment isn't enough. Derby will take a three year view and this is a tactic that will make them more successful if the new regime is successful. Personally, I think 12 points in a single season isnt enough. They should start the following season in League Two

 

I be would automatically relegate a club in administration 3 divisions. There isn’t enough of a football penalty for cheating as Derby clearly have. You are quite right and as others have said it usually small local independent business who suffer. It’s wrong.

 

While I agree with the sentiment, I wouldn't make it automatic.

From time to time, a club may go into admin though no or very little fault of their own(didn't we go into admin because on the ITV Digital stuff, rather than trying to cheat and spending money we didn't have to gain an advantage?).

I'd keep the 12 point penalty as standard and apply it immediately. I'd then have a tariff system that adds points onto the punishment(and even remove them for some actions, like paying non-football creditors in full, swiftly), depending on the club's actions leading up to the admin event, and the scale of the mismanagement. The most severe would be expulsion from the league altogether. I'd also have a yellow/red card system, where being put into admin twice in a certain period of time also means league expulsion.

 

It’s a strange one , because the person who’s actual “fault” it is for Derby’s mess - it’s owner - Mel Morris - is just going to walk away and the punishment will be visited on future Derby with no consequences for Morris. Something had to be done to him personally. Criminal punishments and life bans come to mind, it’s beyond my comprehension that Peter Ridsfale is allowed anywhere near football, or indeed any position of financial responsibility, no doubt Preston will pay the price.

https://en.m.wikipedia.org/wiki/Peter_Ridsdale

 

I suppose you could say part of his punishment is now the club has been put into admin, he won't make a single penny of his investment back. Hi goal will have been to overspend until Derby are an established Premier League club, then either draw money from the increased income or sell for a profit. Now it's gone titts up, all the money he has put in has gone. I suppose you could also say that more importantly for someone that has the wealth he has, is that his pride, ego, and reputation have taken a huge hit.

As for Risdale, I honestly believe he has some compromising photos of the Football League bigwigs and multiple club owners all in compromising positions with dogs, Keith Laird style. It's the only explanation.

 

He owns the ground though so he won't be penniless!