A report in The Telegraph has cited both good and bad financial news for Derby County ahead of this summer.

Following Birmingham City’s nine-point deduction after falling foul of Financial Fair Play rules, heads turned to fellow Championship clubs. Derby County were named among them.

The Rams have spent big since the arrival of Mel Morris as owner. They’ve pushed the limits in their bid for Premier League football, three times breaking their own transfer record.

Unfortunately for Derby, they have come up short and now must face possible consequences. The report in The Telegraph highlights their financial situation, with both good and bad news to come from it.

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The good news for Derby County:

Despite spending heavily over the past few seasons, Derby are said to have been operating within the financial limits. Should this be true, then the Rams will not follow in Birmingham’s footsteps and face a points deduction punishment.

A possible reason for Derby to be keeping their head just above water is due to former player sales. Key players such as Will Hughes, Jeff Hendrick, Tom Ince and Matej Vydra have all been sold for big money in recent years.

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The bad news for Derby County:

The report, however, lists potential bad news which suggests Derby’s wage bill must be slashed this summer.

Several players are out of contract this summer which will help their cause. Those include big signings Bradley Johnson and Jacob Butterfield, former internationals Marcus Olsson and David Nugent, experienced pros Alex Pearce and Craig Bryson plus forgotten man Nick Blackman.

Derby’s squad may look bare this summer, and manager Frank Lampard will have a job on his hands rebuilding. But with reported losses of £2 million a month, his transfer kitty and wage budget may be restricted.

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The possible consequences:

Derby’s best bet to solve their financial situation would be promotion to the Premier League. They still have a shot at reaching the playoffs, but a failure to do so could prompt the start of a fresh plan.

The Rams embarked on a similar road under former manager Nigel Clough as they cut costs. It took the current Burton Albion boss five years to clear the deadwood and change the culture at the club. Derby fans will be hoping they won’t have to endure another similar fate and a potential stretch of Championship struggle.

Also see: League One boss’ Luke Thomas comments should prompt Derby County call next season

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