Derby County’s joint administrator Andrew Hosking revealed yesterday that they’ve issued ‘a series of non-disclosure agreements for signature’, as the club goes in search of a new owner.
Hosking, managing director of Quantuma, is one of a handful of administrators who were brought into Derby County last month, as the Midlands club entered into administration.
Since, there’s been plenty of positive news to report with regards to a potential buyout of the crisis club and yesterday, there was more.
In a statement passed on to The72, Hosking revealed that he’s issued ‘non-disclosure agreements’ (NDAs) to a number of interested parties which, when signed, can allow said parties to move unto the next step of the takeover process.
“We have been contacted by a number of interested parties in relation to the sale of Derby County and have subsequently issued a series of non-disclosure agreements (NDAs) for signature in order to proceed,” Hosking stated.
“Of those who have returned a signed NDA, several have been able to provide the necessary proof of funds we have requested to be considered as a serious bidder.”
So what is an NDA, and what is the next stage of the takeover process?
An NDA is a legally binding contract. They’re often used in business and start-ups to ensure buyer and recipient confidentiality as to protect intellectual property and such.
In terms of buying a football club, an NDA not only validates the integrity of those receiving said NDAs, but also ensures that the details of their potential takeover bid will not be released to the press – any leaking of sensitive information is deemed a breach of the NDA.
As defined by MS Solicitors:
“A Non-Disclosure Agreement is a legal contract, where the parties agree not to disclose any confidential or sensitive information. A Non-Disclosure Agreement will define what is confidential, and they are often used to protect intellectual property and to keep trade secrets.”
Hosking stated above that several interested parties have returned a signed NDA and have also ‘been able to provide proof of funding’, as to be considered as a ‘serious bidder’.
Now, it’s a case of who can put the best bid to the administrators. Due to the NDAs in place, we obviously won’t know the profile of these ‘serious bidders’ until something becomes more official.
But this is hugely positive news for Derby County and their fans, who’ve been through hell and back over the past 18 months or so. Potential new owners seem to be queuing up to take control of the club but there remains a long road ahead, and many more potential hurdles to overcome.
