SCG and Quantuma Minutes (20th January 2022)



Attendees

AH- Andrew Hosking, Quantuma

CJ - Carl Jackson, Quantuma

RE- Richard Easterby, Quantuma

LH - Lynn Hemsworth, Chair of Official Supporters Clubs

NO - Nigel Owen, Black and White Together

KH - Kevin Hepworth, Rams Trust

GD- Gary Dempsey, Derby County Disabled Supporters Club

LO - Lucy Oram, 1884 Group

SF - Stuart Forsyth, Derby County Collection

NW - Nick Webster, South Stand Rams

JG - Jas Gidda, Punjabi Rams

AA - Angela Allen, DCFC


Administrators’ Statement

Quantuma will be releasing an announcement today (see here), to supporters and the press. This will contain headline information, and will perhaps not be as detailed as supporters may wish, but they are limited in what they can say publicly. The statement will cover three main points, but in reality they are all closely linked: Interested Parties, Claims from other clubs, funding / EFL position.

Fan Engagement

The administrators are receiving hundreds of emails and messages and are doing their best to respond accordingly. The majority are supportive however some are highly abusive messages to individuals of Quantuma and their families. This is not how they view the majority of the DCFC fanbase but want to make everyone aware.

- Note - DCFC would like to remind all supporters they are fully behind Quantuma and will not condone abusive threats to any of their staff or families and if necessary will report said individuals to the Police


Interested Parties

There are still 3 interested parties, but we are not in position to name a preferred bidder right now. We do expect to announce them shortly, but cannot and will not put a timescale on this. Ensuring bids satisfy both Insolvency legislation and the EFL’s Insolvency Policy is still ongoing.

All interested parties are in the same position in relation to the stadium. The administrators have received written confirmation from Mel Morris that, upon naming our preferred bidder he will enter into a period of exclusivity with them, or an option to buy agreement.


Funding

During the early stages of the administration the EFL asked the administrators to prove availability of funds to the end of the season. It was agreed that it was initially acceptable for evidence of funding to be provided until January at which point it was anticipated a preferred bidder would be in place. As that has not yet been finalised the EFL has again asked for evidence of funding to be provided to the end of the season. 3 funding scenarios were put to the EFL but following their board meeting on Thursday. They decided that, as the funding had not been fully agreed and put in place, the club would be placed under an embargo which included the signing of players, re-signing players or extending player contracts. The EFL has set the deadline of 1 February for the club’s funding and ongoing embargo to be reviewed. The EFL has NOT said they will remove DCFC from EFL if proof of funding has not been received by 1 February. Nonetheless, the administrators are confident that this can be done by that deadline.


Until now, funding has been provided by a facility from MSD.

Raising the funding is not as simple as people think. It is very difficult to provide comfort that a funder would recover their funds should the club go into liquidation.


Quantuma have NOT taken any funds from DCFC, and are continuing to fund expenses. So despite what supporters may think, no DCFC money at all has been paid to Quantuma to date.

No money is coming in from the EFL including the ‘usual’ TV revenue as this is withheld.

The ongoing funding requirements are approximately £1.25m-£1.75m per month.


Season Ticket revenue is held in a ring fenced fund, and a corresponding proportion of those funds is drawn down following each home game.


The administrators cannot go on sale for 22/23 Season Tickets now because that is built into budget for next season & would then mean a deficit for next season.

The administrators are receiving plenty of offers of assistance in respect of fundraising ideas. It is agreed that NO will be the fans’ point of contact in that regard and RE will be the point of contact at Quantuma to look further into these ideas. There are difficulties in accepting monies, and ideally fans’ money would not be utilised, but we are very keen to explore it should the need arise to use such a fund. There are complications, such as what is done with the money if it is not all used. How is the money returned to donors?


Mel Morris has not been directly asked to help fund the club until the end of season. However the club is not being charged rent on the stadium at the moment, and MSD have loaned money to help cover costs for the last 3 months, secured against the stadium, with Mel Morris’ assistance and consent.

Funding is tight every month and it was asked whether the wages could be paid at the end of January. The administrators expect to be able to do so although that will be determined nearer the end of the month. There is the option of requesting wage deferrals although the administrators have steered away from that option to date.


Claims from other football clubs

The administrators’ job is to work with all parties and get the best outcome for DCFC. The administrators have received 3 QC opinions to the effect that the claims are unlikely to ever succeed in a court of law. They also stand by the view that the claims should not stand as Football Creditors and are working with the EFL to confirm/clarify this.

3 potential bidders have made offers, well in excess of the value of the club’s assets. The administrators have been encouraged by the EFL to make funds available to settle the claims. Firstly, the administrators have to follow their professional insolvency regulations in how they can use funds under their control, and secondly, doing so is unlikely to leave sufficient funds to satisfy the EFL’s insolvency policy as it stands.


Playing squad

The administrators have a very good working relationship with Wayne Rooney. As is to be expected, he was bitterly disappointed with the EFL decision that led to the embargo and the inability to extend player contracts or sign new players.

CJ met with WR on Tues (17th) and he fully understands the issues. His ideal scenario is the embargo is lifted and he can keep the squad together. We have committed to keep him up to date.

The EFL probably want the administrators to be more ruthless, but it is not their intention to do that.


Other

The deferred payment to Arsenal has been paid.

We are not currently considering further redundancies or downgrading the academy’s Cat 1 status. The academy status is attractive to potential new owners.

The club has not received an approach from Everton for Wayne Rooney, his agent confirmed and so did WR. He is 100% committed to DCFC.

The administrators have not, to date, considered the eventuality of Wayne Rooney leaving DCFC. It is believed that the club would be able to seek a replacement from outside the club, and would receive special dispensation to do so, but it is not a point that has been discussed. It is hypothetical only because Wayne Rooney is committed to DCFC and there has been no approach from Everton or anyone else.


The Administrators are always happy to meet with other parties where they see fit. There has been a suggested meeting next week with MPs, the EFL and Quantuma.