DERBY COUNTY have slammed the English Football League’s decision to charge them for breaching spending rules.
The EFL charged the Rams on Thursday regarding losses made in the three years up to June 2018.
Derby County could face a points deduction this seasonCredit: PA:Press Association
The Championship side could even face a points deduction this season.
But in a strongly worded statement posted to the club’s website, Derby contested the decision.
It read: “The club will strongly contest the challenge to the valuation of Pride Park stadium, as well as the newly notified charge in respect of intangible fixed asset amortisation.
As a matter of law, the EFL is not entitled to bring either of the charges, having previously agreed to all of the arrangements surrounding the stadium sale and never having raised the issue of player amortisation before. The Club shall argue that the very bringing of the Charges itself is unlawful.
At all times, the Club has acted transparently with the EFL in its submissions for both FFP/P&S and, in respect of the charges above, had received written approval for all of its submissions in respect of this legislation. No allegation has been raised to the contrary by the EFL. Rather, the EFL now claims that it made a “mistake.”
Within the three year period under review by the EFL, Derby posted pre-tax losses of £8million.
This figure falls far below the £39million of allowable losses that EFL rules stipulate that a club can make.
The Rams even posted a pre-tax profit of £8million in 2018 – their first financial year profit in a decade.
But the issue at hand regards the sale of Pride Park.
Former England skipper Wayne Rooney has recently been turning out for the RamsCredit: Alamy Live News
Derby controversially sold the stadium for £80million to a company also owned by club chairman Mel Morris – before leasing it back.
Many of Derby’s league rivals were unhappy with the deal – with some believing that it was made to get around the EFL’s profitability and sustainability laws.
But the club’s statement goes on to say: “The Stadium was valued by professional valuers immediately prior to the transaction.
“The transaction and valuation were discussed extensively with the EFL Executive, which asked for a relatively modest price adjustment which was accepted.
“The valuation report was prepared by a highly reputable and professional and independent firm, with industry experience, who had valued the stadium on two prior occasions, one in 2007, and one in 2013.
“The Club discussed the rationale for the stadium sale with the EFL Executive, ahead of the transaction, supplied and discussed the valuation, and bar a small adjustment in respect of its FFP/P&S submissions, the Club was given written approval.”
Mel Morris discusses Wayne Rooney’s impact since he joined Derby
Source: Soccer - thesun.co.uk
