Yorkshire Carnegie failed to overcome the upheaval caused by the breaking news of Michael Vaughan's impending retirement and went down to Derbyshire Phantoms by 37 runs at Headingley.

It was a fourth consecutive defeat in the Twenty20 Cup for dispirited Yorkshire and as well as missing out on the quarter-final draw the Tykes have also been unable to secure a place in Division One of the new P20 tournament which kicks off next season.

With the furore surrounding Vaughan's future, Yorkshire decided it would be in the best interests of both the club and the player if he stood down from the match and he was replaced by skipper Anthony McGrath, who had missed the three previous games with a whiplash injury caused when he was in a car accident a week ago.

Yorkshire chief executive, Stewart Regan, said: "Anthony was not in the original squad for the match but he came through a late fitness test from club physiotherapist, Scott McAllister, and it was decided the captain was needed for such an important match with so much at stake."

McGrath, however, was unable to change Yorkshire's flagging fortunes in what is turning into a dismal season and once again it was their batting which crumbled after they had got off to a cracking start as they chased a victory target of 165.

Man of the match Jake Needham did most of the damage with his off-breaks, taking three wickets in four balls early in his opening spell and finishing with figures of four for 21 off his four overs.

There was little evidence of the collapse to come as openers Andrew Gale and Jacques Rudolph tore into the bowling with a salvo of boundary shots, Gale helping himself to five fours in the first two overs from Graham Wagg and Nantie Hayward.

Tim Groenewald was similarly punished by Rudolph who drove his first two deliveries to the boundary and Tom Lungley conceded a four to each batsman in his initial over.

The breakthrough for Derbyshire came at 42 in the fifth over when Gale drove Groenewald gently to Chris Rogers at cover to end an innings of 26 from 14 balls with six fours.

But it was when Needham came on to have Rudolph smartly stumped for 24 that the rot really set in as six wickets toppled for 26.

Adam Lyth was out first ball, leaving Joe Sayers to deny the spinner a hat-trick but he soon pinned Sayers lbw.

McGrath attempted to retrieve the situation by driving Needham for six but Richard Pyrah became Needham's fourth victim before Ajmal Shahzad was bowled in the next over by one from Wagg which shot through low.

The departure of McGrath to a beautifully-judged boundary catch by Needham effectively spelled the end for Yorkshire but after Stuart Law had dismissed Deon Kruis and Steve Patterson with consecutive deliveries in his first over in Twenty20 cricket he was denied the chance of a possible hat-trick because Gerard Brophy was unable to bat due to aggravating a hand injury while keeping wicket.

Rogers launched an early assault on Shahzad, striking consecutive balls for four, six and four after Derbyshire had been put in to bat, but with 23 scored in under three overs he lost Wagg who hit Kruis straight into the air and was caught by Gale.

Rogers hit out freely in smacking 37 off 23 balls with four fours and a six but, like Law, he was short of his crease when Sayers threw into the gloves of substitute wicketkeeper, Jonathan Bairstow.

Wavell Hinds and Garry Park ensured Derbyshire a respectable total with a 57 stand for the fifth wicket, Hinds ending unbeaten on 49 from 44 balls with two fours and a six while Park hit 42 from 23 deliveries with four fours and two sixes.

Despite their convincing victory, Derbyshire still finished bottom of the North Division table.