EFL statement ref Derby (updates)

Anterimus

Anterimus

Well-known member
The EFL has issued the following statement ...

An Independent League Arbitration Panel has allowed the EFL’s appeal against the outcome of an independent Disciplinary Commission in respect of misconduct charges brought against Derby County.

The panel concluded that the Disciplinary Commission was wrong to dismiss the League’s expert accountancy evidence, which demonstrated that the Club’s policy regarding the amortisation of player registrations was contrary to standard accounting rules.

More specifically, the panel determined that the Club’s policy was not in accordance with accounting standard FRS102 because it failed to accurately reflect the manner in which the Club takes the benefit of player registrations over the lifetime of a player’s contract.

The original Disciplinary Commission had already concluded that the Club did not adequately disclose in its financial statements the nature and or effect of its change in accounting policy, and there has been no appeal against that decision.

The Club and EFL will now have the opportunity to make submissions on the appropriate sanction arising out of those breaches.

Despite media speculation there are no definitive timescale for a determination on sanction though the League will press for a decision as soon as reasonably possible and will provide a further update at the appropriate time.

The EFL will be making no further comment on this matter at this time
 
Derby Response

CLUB STATEMENT

The League Arbitration Panel (‘LAP’) has granted a limited aspect of the EFL’s appeal against the Decision of the Disciplinary Commission (‘DC’) in August 2020 in relation the EFL’s Second Charge against the Club relating to the Club’s amortisation policy. No appeal was brought against the DC’s dismissal of the First Charge relating to the stadium sale.

The LAP found for the EFL on the sole ground that the Commission made an error in law “in rejecting the evidence of Professor Pope that it was impermissible in principle under the cost model for the Club to take into account possible resale values of players” in relation to the accounts for 2015/16, 2016/17 and 2017/18 seasons. The LAP rejected the EFL’s other two grounds of appeal.

The DC heard the original case over a week of evidence in 2020 included two eminent QCs and an expert accountant appointed by the EFL. It was found by the LAP to have produced an “enormously impressive and diligent” Decision. It had found that the Club had acted honestly, and its accounting policy substantively conformed with accounting standards. The LAP, which consisted of three very eminent lawyers, but no expert accountant, found that on one ground this was not so.

At the appeal the EFL accepted the DC’s factual findings at paragraph 54 of its Decision: the Club’s witnesses were found to have given truthful evidence about the amortisation policy, and their judgments were made in light of carefully researched and objectively justifiable information. The LAP did not interfere with that important finding.

The reason the EFL’s appeal took so long to determine was because of three separate preliminary issues raised by Middlesbrough FC and then the EFL, each of which required hearings and decisions by the LAP, and each of which was dismissed with the Club being successful. Had Middlesbrough and the EFL not brought those preliminary issues the appeal could have been determined in 2020.

The Club accepts but is disappointed with the LAP’s conclusion on the one ground that the EFL succeeded on. The Club and the EFL have agreed that the matter shall now be remitted back to the original DC who can determine what, if any, consequences arise from the partial success of the EFL’s Amortisation charge, and the Club is therefore currently unable to comment further.
 
Middlesbrough delayed the EFL appeal by over 5 months so they could submit their allegations, all of which were dismissed and proven false. Unreal. Cheers for keeping us in the division. X
 
Mr.DerbyCountyFC said:
Middlesbrough delayed the EFL appeal by over 5 months so they could submit their allegations, all of which were dismissed and proven false. Unreal. Cheers for keeping us in the division. X
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No offence meant here, but are you really a Derby fan, or a fictitious mad-cap character created by one of the board's resident jesters?

Go on, you can tell me, no one else is listening.
 
Ratedr69 said:
Derby County. Devil in the detail. The appeal decision was officially signed off on May 7. That’s last Friday. Just before the last game.

Boooom RELEGATION !!!!
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I hope so, but Alan Nixon isn't exactly a font of knowledge when it comes to things like this.
They might well still feel unable to apply it this season as Derby will undoubtedly try to contest the punishment.
 
Talk of a 12 point deduction next season is utter madness. Get it done for this season so all parties can move forward. Derby aren't staying up next season starting on -12 so why delay the inevitable. 3 season of teams playing Derby in a false financial position, make the necessary deductions now to save next season.
 
Derby have more chance going up next season from league one than making it back after a relegation next season.
 
Alzi said:
Can't imagine having to fork out over 2M to Keogh and be faced with sanctions next season is too appealing to prospective new owners.
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I'd hope that the EFL ensure that payout is included in any future FFP calculations, otherwise it will set a precedent for clubs struggling with FFP to find underhand and unfair methods of sacking players in future to save on FFP.
 
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