Teams: Derby County, Burton Albion
June 2005 Accounts
Derby County Football Club's accounts to 30th June 2005, issued this week, show a loss of £8.9m in the previous year, with an active bank debt of £45.6-million.
At the time of the acquisition of the club by the current Board at the end of April this year the debt had increased to around £50-million, with an annual interest burden approaching £4-million.
A mixture of new capital introduced by the directors, debt forgiveness by the club's bankers and assignment of debt by the club to the limited company set up by the board as an acquisition vehicle has reduced the overall debt significantly.
The £15-million owed to the ABC Corporation has been repaid. When restructuring is completed in the near future the club's debt will stand at approximately £11.5-million, of which £3-million is deferred, repayable only under certain circumstances. A further portion of the debt is interest free.
The new board, via a mixture of cash introduced and personal guarantees given to the club's bankers have provided financing of £21-million in connection with the restructuring.
Said Chairman Peter Gadsby: "The 2005 accounts in many respects are now irrelevant. Like the 2006 accounts, which will be released in due course, they relate to the period when the club was under the stewardship of its previous owners. What the accounts do provide, however, is an overview of the new funding arrangements which I hope will provide a great deal of comfort to our supporters.
"This has been achieved by the hard work of my fellow Directors, all of whom continue to bring their considerable skills to bear in developing the club further, both on and off the field.
"I would also like to thank the supporters for their vocal and energetic backing during the takeover. It was their support and encouragement that kept us going when it would have been easy to throw in the towel. We were left under no illusion that they wanted the club - their club - returning to local ownership. Without doubt the last few days of April were traumatic and this great club was perilously close to having to enter into some sort of forced or voluntary financial arrangement.
We now have much cause for optimism. We have financial stability, some of the best supporters in the country, solid and valued corporate partners, superb playing and training facilities, one of the most highly rated managers in the country and a number of new signings as the process of rebuilding the team gets underway.
"A competitive player budget has been provided to aid the rebuilding process. Like the supporters, all at the club are hungry for success. However, success must be built on solid foundations and with sustainable progression, thereby avoiding the mistakes that have been made in the past.
Originally Posted by Nico
I dont belive in jinxing mate, I do belive in playing at home with a 2-0 advantage against a team which I cant see scoring 2 goals!
Of course, if we lose, I'll never admit it was me who wrote this.
Forest 2-5 Yeovil aet
Brian Clough - Legend!