Football finance expert Kieran Maguire has given his view on Derby County and their points deduction appeal against the EFL.
Wayne Rooney’s side officially entered administration back in September, which saw them handed a fine as well as a points deduction which has seen them slip to the bottom of the Championship table.
The club’s administrators have since begun an appeal process against the EFL’s decision, with an article from the BBC noting: ‘The club is arguing the situation was caused by the financial impact of the pandemic, and therefore the points deduction should not apply.’
Maguire recently revealed on Twitter the costs associated with an appeal against the EFL could amount to around £400k, citing Wigan Athletic’s appeal last year, and speaking on The Price Of Football podcast, Maguire explained why the club might be willing to take the financial hit of an appeal given the benefits involved for them if they win:
“It is a bit of a gamble, but if Derby are successful, they will see it as they will get an extra £6-7m in TV money, they’ll get a better commercial deal from their front-of-shirt sponsor next season because they’re less likely to be in League One.
“And also, if you’re trying to sell Derby County as a Championship club, you’re going be able to sell it for a higher price than if it’s a League One club, because you’re only one step away from the Premier League. So I suspect the administrators have done their sums.
“It’s a punt, it’s an expensive punt, but if it comes off, there will be high-fives and trebles all around [for] the administrators, and also from the point of view of Derby County fans themselves.”
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When you look at the figures that Maguire mentioned, you can understand why the club might be so desperate to lodge their appeal, because the amount that they could get from just one season staying in the division far exceeds what they would have to fork out in legal fees in challenging the decision.
You just hope that they are successful in their appeal, because if they lose and are stuck with their points deduction throughout the season and ultimately are relegated because of it, then it’s something that could set the club back years.
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