EFL set to CONTEST the decision to clear Derby of breaching spending rules

25 August 2020 0 By Total Football News

EFL consider appealing decision to CLEAR Derby over £80m sale of Pride Park and £30m loan from equity firm

  • The EFL are considering an appeal against the decision to clear Derby County
  • Derby County were charged with misconduct over the £80m sale of Pride Park 
  • Several clubs also complained about a loan made to Derby by MSD UK Holdings
  • EFL regulations ban clubs from losing more than £39m over a three-year period  
  • But both Derby and the EFL confirmed that both charges have been dismissed 

The EFL are considering an appeal against the decision by an independent panel to clear Derby County of breaching spending rules which left executives shocked and dismayed on Tuesday.

The Championship club escaped a points deduction after charges relating to their valuation of Pride Park following its £80million sale and their practice of assigning players a residual transfer value at the end of their contracts were dismissed by a three-person tribunal.

The EFL will consider the panel's full written reasons for the decision before confirming any appeal in the next 14 days, but are considering contesting the verdict which gives the impression that their profit and sustainability rules relating to stadium sales are not fit for purpose.

Derby were subjected to two charges from the EFL but both have been dismissed by a panel

Derby were subjected to two charges from the EFL but both have been dismissed by a panel 

Derby's escape is a blow to the EFL who had a partial victory over Sheffield Wednesday in front of another independent panel last month. 

The Yorkshire club were docked 12 points for recording the sale of Hillsborough in the wrong financial year, but cleared of deliberately seeking to mislead the EFL.

Derby's case relates to the valuation of Pride Park when owner Mel Morris sold the ground to another of his companies for £80m last year despite it previously being listed as worth £41m, a sale which enabled the club to comply with the EFL's spending rules by limiting their losses.

The EFL are, however, considering an appeal against the decision to clear Derby County

The EFL are, however, considering an appeal against the decision to clear Derby County 

A second charge over how Derby measure the value of players — called amortisation — in their accounts was also dismissed, although the panel did conclude that 'the wording of the amortisation policy in Derby's financial statements could have been clearer'.

Most clubs spread the transfer fee they have paid for a player over the life of his contract, valuing their worth at £0 at the end of their deal.

However, Derby have assigned a residual value since 2015 which has boosted their accounts. 

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