Government urges EFL to resolve Derby issue ‘pragmatically and rapidly’

The Government has called on the EFL to work “pragmatically and rapidly” to resolve issues that threaten the future of Derby.

The Rams went into administration last September and have been docked 21 points for breaching EFL financial rules.

The Sky Bet Championship club’s administrators are understood to be in talks with three potential buyers, but have been unable to name a preferred bidder due to the threat of legal action against Derby by two other clubs.

Middlesbrough and Wycombe are seeking compensation for loss of earnings in relation to the Rams’ financial breaches and potential new owners are reluctant to commit themselves to further liabilities.

It has now been stressed to the EFL that it needs to find a solution to the complex situation as it continues to be “pressed” on the issue.

“In relation to the English Football League, the sports minister (Nigel Huddleston) has been in close contact with them,” Culture minister Chris Philp told the Commons on Tuesday.

“We do want to see the English Football League work urgently and pragmatically and rapidly to resolve these outstanding issues which are in the way of a takeover by a new owner, who we hope can invest the money needed to turn the club around.

“He is pressing the English Football League very hard on these points and I’m sure he’ll do so again, and I’m sure the English Football League will be listening to our proceedings this afternoon and hear the message coming from this House and will act accordingly.

“The current situation is a worrying one for fans, the local community and football alike. No-one wants to see one of the founding members of the Football League in administration and facing threats to its survival.”

The EFL said on Monday it is committed to resolving “a complex legal position” that is threatening the Rams’ bid to find a buyer and exit administration.

An EFL statement read: “The current situation remains challenging as Middlesbrough and Wycombe Wanderers consider their claims should be protected under the terms of the Insolvency Policy. The administrators disagree.”

The EFL added that Derby consider the claims to be “spurious”, but the current bidders “appear unwilling to assume the risk of defending them”.

Middlesbrough issued a lengthy retort to the EFL statement and the ongoing nature of their claim against Derby, saying “cheating” the rules had cost the Teesside club a place in the Championship play-offs at the end of the 2018-19 campaign.

“MFC is aware of the media speculation regarding its claim against Derby County and has read (Monday night’s) statement by the EFL,” it read.

“The club wishes to ensure that, to the extent possible given that the arbitration claim is confidential, the full facts are in the public domain, rather than ill-informed speculation.

“Without breaking the confidentiality of the proceedings, in simple terms, MFC allege Derby County and its directors systematically cheated under the P&S Rules and that such cheating affects the integrity of the competition.

“At least two clubs, namely Middlesbrough and Wycombe, were directly affected by the cheating, albeit in different seasons.

“In simple terms so far as MFC is concerned, had Derby County not cheated, MFC would have been in the play-offs. However, Derby County did cheat and, as a result, MFC lost the opportunities that arise as result of that.

“It is said that there is no prospect of the claim succeeding, in which case there is no risk for a new owner. But, on the other hand, the administrator apparently cannot find a new owner because they will not proceed without the claim being settled due, presumably, to the fact that it has merit and might succeed.

“If the claim has no prospect of success, MFC does not understand why a new owner would resolve the matter by accepting that the arbitration decision should be honoured.”

The Rams have always denied any wrongdoing.

The 21-point deduction has left Derby battling against relegation this term, although Wayne Rooney’s side moved off the foot of the table with a 2-0 win over Sheffield United at the weekend.