Derby County poised to go into administration, risking a 21-point deduction

Derby face the prospect of being deducted up to 21 points after announcing they are set to go into administration.

Wayne Rooney will take charge of the club’s Championship fixture against Stoke City at Pride Park on Saturday with the backdrop of uncertainty this season as a result of their dire financial problems.

They issued a statement on Friday night insisting the club's directors "had no choice but to make the tough decision" to file notice to appoint administrators, with estimated losses of £20 million from the Covid-19 pandemic leaving them unable to fulfil their financial obligations.

For going into administration they will be punished with a 12-point penalty, the EFL confirmed on Friday night - which would plunge them to the bottom of the table on their own - while the club already has a nine-point deduction hanging over them for financial breaches.

Owner Mel Morris has been willing to sell the club but no consortium has completed a takeover.

"Last week, it became clear that the process which has been underway to identify a purchaser for the club likely would not be productive over the near term, despite the number of negotiations with credible parties,” read a statement from Derby.

"Because the Covid-19 pandemic has had a severe impact on the revenues and profits of all of its businesses, the club has been unable to service its day-to-day financial obligations. The directors had no choice but to make the tough decision to take this action and protect the Club."

Derby are set to face the mandatory points deduction once the EFL has received formal notification of the application to go into administration.

Speaking before Friday night's news of the club filing notice to appoint administrators, Rooney had insisted that he could still guide Derby, currently on seven points, to Championship survival, albeit a heavier points deduction would make it "more difficult."

As first reported Telegraph Sport on August 26, the EFL is in talks with Derby over a settlement which will result in a points deduction of nine points, plus a suspended three points, and an imposed business plan which will restrict them in the transfer market.

A resolution is edging nearer and there is hope that it could be concluded next week, while the 12-point deduction will be automatic.

“I am committed to this club. If we get nine points [deduction], I am confident we would stay in this division. I have a lot of faith in the players and myself,” Rooney said. “If it was more points, it would be more difficult, but my commitment is there for all to see.

“I am a fighter. We have got our issues here at Derby, but a lot of different clubs have their own issues.

“All we can do is focus on the games. The players have been ­excellent in training and the work they are putting into games.”

Rooney has worked under a transfer embargo for much of his tenure and this summer was only permitted to sign free agents and loan signings for six months.

Morris, the club’s owner, remains determined to sell the club, but is effectively in limbo until the dispute with the EFL is resolved.