Nadine Dorries, the new minister of culture and sport, has promised to take “measures” to prevent more football clubs from going under after Derby County was the last to run into financial difficulties.
She responded to comments from Sky Sports commentator Gary Neville, who asked her to appoint an independent regulator to “stop this happening”.
Championship side, the Rams, as Derby is called, are owned by ex-Manchester United Legend Wayne Rooney, but they could be deducted up to 21 points after announcing their intention to enter the administration.
The English Football League (EFL) has confirmed that the club is facing a 12 point deduction after the bankruptcy is over, in addition to the nine point deduction made this week in talks with the EFL for violating the championship financial fair play rules was agreed.
Owner Mel Morris told Sky Sports News he was “devastated” and cited the financial implications of COVID-19 and a number of failed takeover attempts at the root of their crisis.
Neville said a fan-led review of former Minister Tracey Crouch recommended that an independent regulator be set up to change the rules of ownership in English football.
He said: “When owners join football clubs there should be an obligation to be able to fulfill the commitments they make. Until we do that, we will continue to have big problems.”
“We need to hear from Nadine Dorries that she will support the recommendations to prevent this from happening.”
In a tweet, Ms. Dorries said, “Gary – understand the widespread concern and look forward to receiving the TC report and final recommendations later this fall.
The Football Supporters Association also called for government action, tweeted, “Derby’s move to administration is just the latest example of the need for stronger, independent financial regulation in football, something we hope the government will understand with the results of the Fan Led Review will deliver. “
Meanwhile, Labor Secretary of State for Culture and Sports, Alison McGovern, said, “Derby County fans will be desperate at the news. Football clubs are not just a business like any other. Fans are right to have protected the identity and history of their clubs.
“Labor has fought for this for a decade and the legislation will not come a moment too soon.
“The government needs to come up with its response to the Crouch Review and in the meantime use every leverage to help Derby County’s fans now.”
Administrators are expected to be appointed early next week and take full control of the finances of a club that has lost between £ 1.3 million to £ 1.5 million a month, with a priority of paying creditors and HMRC, according to Mr Morris .
A derby statement on Friday said: “This action has been made necessary by a number of developments.
“Last week it became clear that the ongoing process of identifying a buyer is unlikely to be productive in the short term, despite the many negotiations with credible parties.”
The EFL affirmed: “The club is subject to a bankruptcy event under the terms of the EFL regulations.
“As a result, the club is faced with a 12 point deduction. Once the EFL receives formal notification of the application, the deduction will be made.”
Derby County ranks 16th in the championship after the first seven games of the season.