Derby charged by EFL with excess FFP losses and could face points deduction after failing to keep spending in check
WAYNE ROONEY’S Derby face a potential points deduction after being charged with breaching EFL financial rules. The Rams sold their Pride Park home to another of owner Mel Morris’ companies in a controversial £80m deal. Previous valuations had rated the ground at being worth around £40m, although Morris, who has consistently denied any wrongdoing, insisted […]
WAYNE ROONEY’S Derby face a potential points deduction after being charged with breaching EFL financial rules.
The Rams sold their Pride Park home to another of owner Mel Morris’ companies in a controversial £80m deal.
Previous valuations had rated the ground at being worth around £40m, although Morris, who has consistently denied any wrongdoing, insisted it was a “fair and reasonable” price tag.
The deal allowed Derby to announce a profit of £14.6m in 2017-18.
That also meant the Rams did not fall foul of EDFL profit and sustainability rules which allow clubs to only lose £39m over a three year period.
In the two previous seasons, Derby had recorded aggregate losses of £22.6m and without the ground sale they would have been in significant breach.
Last season, Birmingham were deducted nine points after recording three year losses of £48.8m.
Middlesbrough led a group of angry clubs who threatened to sue Derby, with Teessiders’ chief Steve Gibson also raising the prospect of legal action against the EFL.
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League bosses then confirmed they had ordered an independent valuation of the transaction, putting the official Derby figures under the microscope.
And now the EFL signalled it has found the Derby calculations unacceptable and breaking the rules.
The consequences could be severe for the club, which has attracted huge attention after recruiting former England skipper Rooney as player-coach.
If Derby were to be found guilty and receive the same penalty handed out to Birmingham it would plunge them into a desperate relegation battle.
Derby are currently 17th in the Championship on 34 points, with Barnsley, on 24, filling the third relegation spot.
In a short statement, the League bosses said: “Following a review of Derby County’s Profitability and Sustainability 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.
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“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.”
The decision may cause serious concerns at both Sheffield Wednesday and Reading, who also utilised a loophole in the EFL rulebook by selling their grounds to companies linked to the club owners.