Derby hit with EFL charge over finances

Last Updated: 16/01/20 6:15pm

Derby have been charged by the EFL
Derby have been charged by the EFL

Derby have been charged by the EFL for breaching Profitability and Sustainability rules.

Following a review of the Sky Bet Championship club’s profitability and sustainability submissions, league chiefs ruled the Rams were in breach of regulations for the three-year period ending June 30, 2018.

An EFL statement said: “Following a review of Derby County’s Profitability and Sustainability (P&S) submissions, the EFL has charged the club for recording losses in excess of the permitted amounts provided for in EFL Regulations for the three-year period ending 30 June 2018.

“The club will now be referred to an independent Disciplinary Commission, which will hear representations from both the EFL and Derby County.

“As these matters are now subject to proceedings, the EFL will be making no further comment at this time.”

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Highlights of the Sky Bet Championship match between Middlesbrough and Derby
Highlights of the Sky Bet Championship match between Middlesbrough and Derby

The charge imposed by the EFL on Derby relates to the purchase of the club’s Pride Park Stadium by one of owner Mel Morris’ other companies before it was leased back to the football club.

The dispute between Derby and the EFL is based on the value placed on Pride Park. Derby’s independent property consultant valued the stadium at £80m, which was the purchase price they used, This allowed Derby to post profits last year of almost £15m

An independent property consultant later employed by the EFL valued the stadium much lower than that £80m figure.

Derby are determined to fight the charge and are adamant they have done nothing wrong.

Other Championship clubs have fallen foul of regulations relating to profitability and sustainability rules, including Birmingham City, who were handed a nine-point deduction last year after exceeding the allowable losses for the 2017-18 season.

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Source : Sky Sports