Derby County confirm that the takeover deal with Spanish boxing promoter Erik Alonso is dead

Derby County have confirmed that the proposed takeover of the club by Spanish boxing promoter Erik Alonso has failed.

Alonso agreed a deal to buy the Rams’ with owner Mel Morris in April, with the club insisting it had seen proof of funds.

However, as revealed by Sportsmail a week ago, Morris was forced to finally accept defeat in this latest attempt to sell the club to Alonso’s No Limits Sports and an EFL source confirmed it was ‘dead in the water’.

Derby County owner Mel Morris admitted defeat in his attempts to sell the club to Erik Alonso

Now, Stephen Pearce, the club’s chief executive officer has written to supporters on behalf of the directors, to confirm Derby are looking elsewhere for a buyer.

Pearce also revealed that Derby have lost £20 million as a result of the coronavirus pandemic. 

‘In respect to the agreement with No Limits Sports Limited, this transaction is no longer under consideration,’ said Pearce.

‘An announcement was made in April that a deal was agreed between Mel Morris and No Limits Sports Limited, but subsequent developments mean the deal is no longer an option.

Erik Alonso (left) agreed a takeover with Derby County owner Mel Morris  but the deal has fallen through. There was speculation over where Alonso’s wealth had come from and Indonesian businessman and sports administrator Raja Sapta Oktohari (right) was linked to the deal, but he denied any involvement. The pair were pictured on Oktohari’s private jet

Alonso said his wealth was drawn from his family and business dealings. He had boxed in Indonesia, where he subsequently became a boxing promoter

‘However, Mel Morris is in touch with a number of credible parties in respect to purchasing both the football club and Pride Park Stadium.

‘Due to confidentiality reasons, we cannot expand on this information at this time in terms of the identities and complexities of the discussions, but should we be in a position to share more details then we will do so.’

The official confirmation of that Derby had moved on from Alonso was inevitable.

Morris held on for over a month in the hope of the Spaniard producing the funds to complete a takeover, despite repeated warnings that he was wasting his time. 

Sportsmail understands the EFL found no grounds to deny Alonso as part of their owners and directors test, had he produced the money to do the deal. They asked him to deposit £35million in a holding account three weeks ago but then heard nothing.

Derby retained Championship status on final day of the season against Sheffield Wednesday

There were also concerns within the EFL about Alonso’s business plan and there were doubts over the credibility of the takeover, especially as the League were unable to determine if he even had a lawyer.

Morris has had a month of relief and pain. His club, managed by England and Manchester United legend Wayne Rooney, retained its Championship status on the final day of the season in a nail-biting 3-3 draw with Sheffield Wednesday. However, as well as the failed takeover, Derby were found in breach of EFL financial fair play rules concerning accountancy practices.

Derby are likely to be hit with a points deduction next season, although the EFL are pushing for the sanction to be imposed as soon as possible, a move that could relegate Wayne Rooney’s side to League One.

Morris remains desperate to sell the club and there has been mention in recent days of an American consortium being in talks.

Meanwhile, fans are looking nervously ahead to next season, despite attempts by the club’s directors to reassure them.

Derby County says it is seeking ‘a balance of quality, experience, energy, and youth’

In his letter Pearce acknowledged there was ‘significant work to be done’ to prepare the squad for next season, with players out of contract. And he suggested Derby would continue to develop young players.

‘Wayne Rooney has clearly outlined his plans to make improvements to the first team squad during the summer transfer window, and we will work closely with him to find the right balance of quality, experience, energy, determination, and youth development to again be competitive,’ he added.

But that has not reassured some of those supporters who have taken to Twitter to express their views. 

‘Load of waffle. Heard it all before,’ said James White from Oakwood, Derby.

‘Did these open letters not question the competency of our recruitment department? And there absolute failure over the last 7 odd seasons? Or have the club just chose not to address this serious issue once again?’ said Gareth @gcw047

The Alonso deal is the second failed takeover at Pride Park this year after Morris also called off the sale of the club to Derventio Holdings in March.