Football finance expert Kieran Maguire has been sharing some details regarding Derby County’s current financial situation and their debts.
This comes after Maguire co-hosted a recent episode of The Price of Football Podcast, where he spoke about a range of financial topics concerning a variety of clubs across England.
On the subject of Derby, who have recently appointed administrators as a result of their poor financial situation, Maguire shed some light on the matter and the club’s debts, in particular.
He said: “The figures I’ve been given, we are talking somewhere, low to mid-20s [millions] of what is owed to the tax authorities, so that would have to be paid. You’ve got football debts estimated around about £10 million.
“£35 million has to be paid 100%, then a quarter of the remaining debts, of which I believe the unsecured creditors are in the region of £5 million to £10 million.
“And then we come to Mel Morris himself. Now, Mel Morris has got over £100 million lent to Derby County.
“If he insists on taking 25% of that, it means that the administrators are going to have to sell Derby County for a fee of around about £60 million for a club, which is in League One and doesn’t own its stadium – that’s simply fanciful. So it’s really concerning as to where we are at present.”
TIF Thoughts on Kieran Maguire’s comments on Derby’s current debt…
Taking into account what Maguire had to say, it’s safe to say that the club are in a complicated situation in regards to what money they have to pay back and who they have to pay it to as a result of Mel Morris’ poor ownership.
As a result of appointing administrators, Wayne Rooney’s side have now been handed a 12-point deduction, placing them at bottom of the Championship table on -2 points, six behind rivals Nottingham Forest in 23rd place.
Are you confident Derby can fix their finances?
With the new administrators revealing that they have already received interest from six potential buyers for the Midlands club, everyone at Derby will have to hope that the debts and other financial issues at Pride Park can be resolved as soon as possible so the main focus can go back to what’s occurring on the pitch rather than behind the scenes and in the boardrooms.