Derby loaned £30m

Anterimus

Anterimus

Well-known member
Whilst we still wait for any decision from the EFL on Derby County and the investigation into their stadium sale, the club have taken a loan of £30m.

Talk is that this is to help pay the players wages and isn't the first loan Mel Morris has received from this source although the previous loan wasn't linked to the club.

There has also been talk that Mel Morris has received loans totalling £81 from potential investor Hasn't who was arrested earlier this year

https://www.google.co.uk/amp/s/www....ounty-financial-arrangement-talks-4419318.amp
 
Heres some more details from the local rag:
Derby County in more 'financial arrangement' talks with billionaire Michael Dell
News comes after details over £30m loan emerged
https://www.derbytelegraph.co.uk/sp...by-county-financial-arrangement-talks-4419318

Extract:
Derby County could be set to receive more funding from billionaire Michael Dell after the club received a major cash injection from one of his companies.

The Rams are have received a loan believed to be around £30m from MSD UK Holdings Limited which is owned by the London-based businessman.

Companies House updated its records to show the deal was registered last week and the Daily Telegraph say the club is continuing discussions over further financial arrangements which could be a "significant loan, investment or takeover".

Derby owner Mel Morris has been eager to attract investment in the last two years and was previously in negotiations with Henry Gabay until deal hit the buffers.



MSD UK Holdings Limited are no stranger to loaning money to football clubs with the same company having helped Southampton and League One Sunderland.

According to Forbes, Dell was the 25th richest man in the world last year and has been continually linked with other football clubs outside of the Premier League.


The Texas-based tycoon, 55, is said to be worth $31 billion, according to Forbes.
 
Rules is rules etc yadda yadda yaddo and so on.

Anyway, Derby are digging a very big hole for themselves financially with all the borrowed money.
 
Maybe they have been given the nod that there will be no comeback on their previous alleged misdemeanours.
 
FFP compliance is surely harmed by a loan, even if it helps with cash flow?! I wouldn't expect a loan to be added to income on FFP calculations, because they haven't sold an asset or service. A loan isn't income, it's debt. It might avoid a penalty for administration, but surely puts them in a worse FFP position as they have to service that debt.

If not then FFP is a complete waste of time, if 3rd parties can pump cash in to avoid FFP breach.
 
BoroMart said:
FFP compliance is surely harmed by a loan, even if it helps with cash flow?! I wouldn't expect a loan to be added to income on FFP calculations, because they haven't sold an asset or service. A loan isn't income, it's debt. It might avoid a penalty for administration, but surely puts them in a worse FFP position as they have to service that debt.

If not then FFP is a complete waste of time, if 3rd parties can pump cash in to avoid FFP breach.
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(y)

Agreed. The EFL are pathetic.

How much more debt do Derby have to build before the EFL say enough is enough. Its like they are allowing an financially unviable company to continue trading, knowing they will fail anytime soon.

The points should be deducted before this new season starts and a ban imposed on further loans or dodgy trading. It gives a sign for others that FFP is a toothless policy - get away with breaking it whilst they can.
 
The majority of their fans are oblivious to it and think it's great business by Mel Morris and that he is the best chairman in the league despite making no progress under him.

They also seem to believe this money will help get them up and they will receive more investment (even though it's a loan and not investment)

The EFL are making a mockery of of it.
 
Hopefully the other clubs can put enough pressure on the EFL to address the Derby situation soonest! To do nothing would likely lead to a legal challenge from other disgruntled clubs.
 
Tomato Soup said:
The BBC are reporting the loan is secured against Pride Park!
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I believe that was alluded to in the Derby newspaper link. One of their fans stated that the club had taken a loan secured by the stadium that they don't own as it was sold to the owner of the club for an over stated value.
However the inertia of the EFL seems to indicate that none of this is an issue.
In which case some clubs may be reaching for their lawyers telephone number while other might be looking to jump on the bandwagon.
 
Tomato Soup said:
The BBC are reporting the loan is secured against Pride Park!
Click to expand...
How can the loan to Derby County be secured against Pride Park when Derby FC Don't own Pride Park anymore, it belnigs to one of Morris's other Companies. Again, this sounds in breach of funding rules.

EDIT: beat me to it billysykes
 
BoroMart said:
FFP compliance is surely harmed by a loan, even if it helps with cash flow?! I wouldn't expect a loan to be added to income on FFP calculations, because they haven't sold an asset or service. A loan isn't income, it's debt. It might avoid a penalty for administration, but surely puts them in a worse FFP position as they have to service that debt.

If not then FFP is a complete waste of time, if 3rd parties can pump cash in to avoid FFP breach.
Click to expand...


Yes, you are right. The loan makes Derby solvent, to pay the wages or whatever they want to do with it. Meanwhile the interest on the debt makes Derby less profitable, so making it harder to comply with FFP. In this instance, Dell is just acting like Gibson O'Neil holdings except that there's interest to pay to Dell.

I have no idea why Michael Dell is interested in lending money to clubs in the Championship. Propping up failing unsustainable companies is an unusual business model to follow. The only way to make a small fortune at it is to invest a large fortune.

You can secure a loan on behalf of someone else or some other entity. Nothing unusual in that, except that in Morris' case, Derby failing badly could take him with it.
 
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