Derby County: EFL says no decision has been made on point deduction


Derby County is still waiting to see if it broke spending rules between 2016 and 2018

The English Football League say no decision has been taken on a possible point deduction for Derby County on their accounting policies.

Media speculation had suggested the Championship team would be pegged at nine points, with three more suspended, leaving them at the bottom of the table.

Their accounts for 2016, 2017 and 2018 are under review after it was found that they had violated the accounting rules.

Rams were fined £ 100,000 and reprimanded in July for this violation.

Under the EFL’s profit and sustainability rules, Derby cannot suffer losses greater than £ 39million over three seasons.

But having had the way they count players – known as depreciation – found to violate EFL rules, the club’s accounts were re-examined by the league to see if they exceeded the level of. loss of £ 39 million.

Depreciation rules should provide that the cost of any transfer fees will be factored in evenly over the term of that player’s contract. So a £ 5million fee on a five-year contract would be charged £ 1million per year and would not be worth anything at the end of the contract. period.

However, Derby gave the players “residual value” – meaning that at the end of the contract they still had value in the club’s accounts that would help the Rams cut costs – a practice it is. claimed does not comply with generally accepted accounting principles.

“In an attempt to resolve any remaining issues with the EFL regarding its P&S submissions, the club provided the EFL with information ahead of last month’s deadline and this remains under review by the executive. of the league, “said an EFL statement.

“In any disciplinary matter, the EFL will always consider whether it can be concluded by a concerted decision in accordance with the EFL 85 rules.

“A concerted decision, subject to independent ratification, is deemed appropriate in circumstances which justify reaching an effective and fair resolution without referral to a disciplinary commission.

“There is no time frame to close this deal and the league will not be providing any further comment at this time.”

In March 2019 Birmingham City was docked at nine points for breaking the rules of profit and sustainability, and Sheffield on Wednesday saw a deduction of 12 points reduced to six points on appeal last season.

If the Owls had not been tallied, Derby, who consequently finished three points above club Yorkshire, would have been relegated from the championship.

Derby had a second charge linked to the sale price of Pride Park to owner Mel Morris terminated by an independent disciplinary commission.

Charges related to the valuation of Pride Park when it was sold to Morris for £ 80million, when it was previously listed as worth £ 41million.

Uncertainty persists at Pride Park

Derby owner Morris is still trying to sell the club, after seeing two potential sales fail.

In March, Derventio Holdings, which was backed by Abu Dhabi’s Bin Zayed Group, saw end of their takeover bid while another of Spanish businessman Erik Alonso was canceled in May.

The club have been under a transfer embargo since before the summer window opened, meaning the Rams were only allowed to sign free agents with strict conditions on wages.

On the pitch, the Rams have won just one of their seven league games this season and have drawn four, leaving them two points above the relegation zone.

If they were to suffer a nine-point deduction, they would drop to minus two points and be behind fierce rivals Nottingham Forest, who currently back the table.


Comments are closed.