Derby going into administration

[cityhammer]

If they go to in admin don’t allow their players become free agents? Plus, they have to clear all football debts before they are allowed to continue!

[Ninian1962]

If they go to in admin don’t allow their players become free agents? Plus, they have to clear all football debts before they are allowed to continue!

The players don`t become free agents - that only happens in a Liquidation. One of the problems the Administrators will have is how to reduce the wage bill as no-one can be sold outside the transfer window and players are highly unlikely to agree to a cancellation of their contracts. One strategy used before in football club Administration is to try and do a deal with players , paying up part of their future contract income - this reduces the longer term club liability (making it more attractive for a buyer), gives the player some immediate cash and leaves them free to join a club with no transfer fee involved in January.

All football debts have to be paid in full . including transfer fee instalments and player wages (subject to a deal being done as above) and all secured creditors also paid so that a creditor with a charge over the ground or other assets either gets paid off or the debt taken on by the new owner. Also all non-secured non football debts have to be paid at least 25% of the amounts they are owed. Only if the above conditions are met can a club come out of Administration. Otherwise it will have to go into liquidation like Bury.

[WJ99mobile]

The players don`t become free agents - that only happens in a Liquidation. One of the problems the Administrators will have is how to reduce the wage bill as no-one can be sold outside the transfer window and players are highly unlikely to agree to a cancellation of their contracts. One strategy used before in football club Administration is to try and do a deal with players , paying up part of their future contract income - this reduces the longer term club liability (making it more attractive for a buyer), gives the player some immediate cash and leaves them free to join a club with no transfer fee involved in January.

All football debts have to be paid in full . including transfer fee instalments and player wages (subject to a deal being done as above) and all secured creditors also paid so that a creditor with a charge over the ground or other assets either gets paid off or the debt taken on by the new owner. Also all non-secured non football debts have to be paid at least 25% of the amounts they are owed. Only if the above conditions are met can a club come out of Administration. Otherwise it will have to go into liquidation like Bury.

That's all well and good, but they are already struggling to fill a side

Personally I believe they will find a buyer.

Derby and Bury are 2 different animals