A charity linked to football team Derby County could lose over £130,000 after the club went into administration, according to documents released over the weekend.
The club, which plays in the second tier of English football, called in administrators in September with debts totalling more than £80m.
Paperwork published with Companies House shows that the club owes the Derby County Community Trust £135,516. The Trust describes itself as Derby County’s “charitable arm” and says that it uses “the power of the club” to attract funding and deliver projects across the city.
Quantuma, the legal firm appointed to act as administrators for Derby County, does not list the charity as preferential creditor, meaning that it will not a be a priority when the club’s available assets are used to pay off outstanding debts. However, they did confirm that the Trust would receive a dividend if the club was successfully restructured.
Money owed to three charities
The Derby County Community Trust had an income of around £3.3m and spent £3m in 2019-20, according to its most recent accounts.
The accounts also show that the charity received £96,884 last year from Derby County and DCFC Stadia, the company which owns the club’s stadium. It received £55,940 in 2018-19.
Steve Hall, the chair of trustees at the Derby County Community Trust, wrote earlier this year that the charity’s work during the pandemic had “helped feed the hungry, reach out to the lonely, and support our incredible NHS workers to deliver care to the sick and vulnerable”.
This included work with food banks and schools, and in partnership with the National Citizens Service to deliver local projects in the midlands for young people.
The club also owes £8,300 to the St John Ambulance and £1,548 to the Open University, which is an exempt charity, the accounts show.
A spokesperson for the Derby County Community Trust did not say whether the charity expected to receive the money owed to them, but said: “We are in discussions with the administrators and continue to enjoy a positive relationship with the club.”
A spokesperson on behalf of the joint administrators said: “We have met with the Trust, who are an unsecured creditor of the Football Club. As and when the football club exits from administration, following a successful restructuring, they would receive a dividend per the EFL [English football league] rules.”
Club breached accounting rules
Derby County have been docked 21 points this season for entering administration and breaching accounting rules.
After victory on Sunday against Bournemouth, the club sits bottom of the Championship with 0 points.
The club did not respond to requests for comment.
Editor's note - 23 November 1.45pm.
This article has been updated to include comment from the administrators.