Takeover lowdown as deadline nears
DERBY County have endured a turbulent season on and off the pitch and fans will be crossing their fingers that the club are officially under new ownership soon.
American businessman Chris Kirchner is closing in on a deal to buy the Rams, with a May 31 deadline set for completion.
That would finally take them out of administration – a situation the club has been in since September.
Derby are preparing for life in League One next season after being relegated from the Championship. Wayne Rooney’s men put up a brave fight against all the odds but, ultimately, having 21 points deducted due to financial issues proved too much to overcome.
There is plenty of work to do behind the scenes over the summer to get the club back on its feet.
But there remains one major obstacle to navigate first in order for Kirchner’s takeover to be completed. Here’s the current state of play:
■ Contracts exchanged
Kirchner confirmed last Monday evening that he had exchanged contracts for the sale of the club with administrators Quantuma, conditional on the sale of the stadium, still owned by former chairman Mel Morris, EFL approval and receiving secured creditor consent.
He said on Twitter: “I’ve been beyond fortunate and I’ll never forget how lucky I am. I’ve had the opportunity to realize many of my dreams and even a lot of things beyond my dreams. Today is a day I’ll never forget. I’m humbled and excited to share that we’ve exchanged contracts with Quantuma and I will be the next owner of Derby County Football Club. These contracts are conditional on the sale of the stadium and some small bits. I don’t anticipate any issues completing the rest of this process in the coming days. I’ll begin funding the club next week.
“The membership agreement with the EFL is agreed to, we have filed with the FA to recognize the transfer and my team is now moving forward on the process to rebuild this iconic club. This has been a traumatic period for everyone and I can say that I hope this is the most difficult transaction I have to complete for a very long time.”
■ Quantuma statement
Quantuma followed this up with a statement of their own last Tuesday morning.
A spokesperson on behalf of the joint administrators of Derby County Football Club said: “During the course of the week since our last update, further significant progress has been made. As a result of this progress, the joint administrators can confirm that they have exchanged contracts for the sale of the business and assets of The Club with preferred bidder, Chris Kirchner. Completion is targeted for on or before 31 May 2022. This is a very significant step towards the completion of a sale of The Club.
“In addition, the joint administrators can confirm that in the interim period between exchange and completion, funding for The Club is being provided by Mr. Kirchner, in a demonstration of his ongoing commitment to securing the long-term future of The Club.
“The exchanging of contracts is conditional on the sale of the stadium, EFL approval and receiving secured creditor consent.
“The period of time between exchange and completion will allow the joint administrators and all relevant stakeholders the time required to work together to meet the conditions required to complete this very complex transaction.
“The joint administrators would like to express their thanks, to all relevant stakeholders for their co-operation and work, towards achieving a successful completion.”
■ EFL give ‘conditional approval’
The EFL also issued a statement last Tuesday to reflect the takeover developments.
It read: “The EFL Board has today given its conditional approval to the proposed acquisition of Derby County Football Club by the company controlled by Mr Chris Kirchner (9CK Sports Holdings Limited).
“The EFL and 9CK Sports Holdings Limited have agreed the terms of a Membership Agreement which will govern the conditions attached to the transfer of the share in the EFL and which ultimately will see the Club exit Administration.
“However, its final approval is subject to Mr Kirchner completing on the Asset Purchase Agreement and a deal being finalised in respect of a lease on the stadium by 31 May 2022. The EFL will continue to work with the relevant parties to ensure the best possible outcome for Derby County, its staff, players, fans, and local community.”
■ Stadium claim
It has been reported that Derbyshire property firm Clowes Developments were in talks over a deal to buy Pride Park Stadium and rent it back to the Rams on “generous terms”.
However, when Derbyshirelive contacted the company, managing director Ian Dickinson said: “I haven’t heard anything about it and have no idea what you’re talking about. Things get spread online that sometimes aren’t true.”
Derby City Council have also previously been touted as a potential buyer for Pride
Park Stadium.