Derby County in Record Debt
Derby County Football Club in Huge Debt
English football club, Derby County, formed in 1884 and one of the 12 founding members of the football league, are in serious financial difficulty and in danger of having their results this season expunged, and being kicked out of the Football League having accumulated one of the biggest debts outside of the Premier League.
The debts totalling £60 million are made up of £30 million owed to HMRC, £20 million that is owed to MSD (a United States investment firm who have supplied loans for the stadium owned by former owner Mel Morris), and another £10 million owed to other creditors.
The club have been given a four-week stay of execution after the English Football League agreed to extend the deadline for the club's administrators to show there are sufficient funds to complete the current season.
Loss of revenue during the coronavirus pandemic has hit the club; however, a hold on debt collection action to wind up the football club by HMRC has benefitted the club to some degree, but it has allowed the football club’s debts to spiral even further.
Negotiations are ongoing with HMRC as Derby’s administrators attempt to reduce the tax burden and make the club more attractive to would-be buyers. Similar discussions are ongoing with MSD as well as the club’s other creditors.
