[Football] Two versions of the Championship fixtures to be published today - Derby County in limbo

[Wozza]

https://www.efl.com/news/2021/june/-derby-county/

An independent Disciplinary Commission has delivered its verdict on sanctions for Derby County relating to ongoing disciplinary proceedings.

In May, an Independent League Arbitration Panel ruled 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.

Tonight, the Disciplinary Commission has announced that the sanction to be imposed in respect of those breaches, is a financial penalty of £100,000 to be paid to the EFL and a reprimand for the Club as to its future conduct regarding the preparation of its Annual Accounts.

In addition, the Club has also been ordered to file restated accounts for financial years ending 30 June 2016, 2017 and 2018 that meet the requirements of FRS102, together with updated Profit & Sustainability calculations if necessary.

Both Derby County and the EFL have the right to appeal that sanction decision.

That being the case, ahead of the publication of the 2021/22 season fixture lists on 24 June at 9am, the EFL can confirm that it has developed an interchangeable fixture list for Derby County and Wycombe Wanderers, while the disciplinary process is finalised.

The fixture list for both the Championship and League One will be published in full based on the 2020/21 final standings, pending any appeals relating to this decision.


In plain English: I guess Derby need to re-do sums and show they didn't break FFP rules in 2016/17/18...

 

[Swansman]

Going to be a nice drama.

 

[Juan Albion]

The lawyers will be rubbing their hands with glee.

 

[bhafc99]

But if they’ve only been fined £100k for the year they “did a bad thing”, I don’t see how things would escalate from that to being deducted points - even if they’d “done the bad thing” in other years too.

Surely it would just be more like an additional £300k in fines?

 

[mikeyjh]

But if they’ve only been fined £100k for the year they “did a bad thing”, I don’t see how things would escalate from that to being deducted points - even if they’d “done the bad thing” in other years too.

Surely it would just be more like an additional £300k in fines?

I suspect that the fine is for the fact we (Derby) used the amortisation method in question, the one that was signed off at the time - As the figures are recalculated then I guess the EFL think there may be a further charge to answer. How they think this will all be resolved by beginning of August is another question, a farce, no doubt.

 

[Neville's Breakfast]

Presumably the appeal that is pending is from Wycombe ? They would want a points penalty rather than a financial one. Otherwise why would they need two fixture lists ?

 

[beorhthelm]

why is there a change of fixtures required, unless the sanction for the accounting error is immediate relegation or expulsion from the league?

 

[Hugo Rune]

I suspect that the fine is for the fact we (Derby) used the amortisation method in question, the one that was signed off at the time - As the figures are recalculated then I guess the EFL think there may be a further charge to answer. How they think this will all be resolved by beginning of August is another question, a farce, no doubt.

The fine will be for the amortisation as you suggest I guess.

The points deduction applied retrospectively to last season and subsequent relegation will be for absolutely tanking FFP.

 

[SAC]

I suspect that the fine is for the fact we (Derby) used the amortisation method in question, the one that was signed off at the time - As the figures are recalculated then I guess the EFL think there may be a further charge to answer. How they think this will all be resolved by beginning of August is another question, a farce, no doubt.

I can't see there being a points deduction. Derby will (quite rightly) be asking which other clubs used the same amortisation methods. If there are others, including clubs in the PL, it will open up a huge can or worms. I agree, no way this will be resolved any time soon unless Derby agree to a fine just to get it out of the way.

 

[schmunk]

I can't see there being a points deduction. Derby will (quite rightly) be asking which other clubs used the same amortisation methods. If there are others, including clubs in the PL, it will open up a huge can or worms. I agree, no way this will be resolved any time soon unless Derby agree to a fine just to get it out of the way.

Clearly you don't listen to the Price of Football podcast - as El Pres will tell you, Derby is the only league club in the country using this method. That's because it's, errr, wrong...

 

[Neville's Breakfast]

I suspect that the fine is for the fact we (Derby) used the amortisation method in question, the one that was signed off at the time - As the figures are recalculated then I guess the EFL think there may be a further charge to answer. How they think this will all be resolved by beginning of August is another question, a farce, no doubt.

The most recent ruling is that Derby’s amortization method was contrary to standard accounting rules. When you say it was signed off at the time do you mean nobody noticed until the accounts were assessed by the EFL’s expert panel ? I’m not sure that having got away with it for a while is much of a defence. Alternatively, do you mean that the EFL were aware that Derby were breaching standard accounting rules and were happy with it ?

 

[Blue Valkyrie]

What is this magical amortization method ?

My guess is fully amortizing the players in the same season that they sold the stadium to themselves ? Is that it ?

 

[albionalbino]

I don't understand what this makes the fixtures?

 

[Neville's Breakfast]

I don't understand what this makes the fixtures?

I think the EFL have just made Derby and Wycombe interchangeable in the Championship and League 1 pending a decision by the league on whether they themselves appeal against the sanction being a 100 grand fine.

 

[Neville's Breakfast]

What is this magical amortization method ?

My guess is fully amortizing the players in the same season that they sold the stadium to themselves ? Is that it ?

‘Since 2015, the club's accounts have stated "the costs associated with acquiring players' registrations… are capitalised and amortised over the period of the respective players' contracts after consideration of their residual values".
As a result, their annual amortisation costs are lower than any other club, as are player-trading profits.’

https://www.google.co.uk/amp/s/www.bbc.com/sport/football/51322797.amp

I hadn’t realized [MENTION=31]El Presidente[/MENTION] did the detective work

 

[mikeyjh]

The most recent ruling is that Derby’s amortization method was contrary to standard accounting rules. When you say it was signed off at the time do you mean nobody noticed until the accounts were assessed by the EFL’s expert panel ? I’m not sure that having got away with it for a while is much of a defence. Alternatively, do you mean that the EFL were aware that Derby were breaching standard accounting rules and were happy with it ?

Go read the original judgement, it addresses this in some detail - You'll also see that the club approached the EFL in 2018 and 2019 to discuss the policy (and the stadium sale, as it happens).

Obv Derby don't come out of this well whatever happens but the EFL are the governing body that have just issues a set of 'interchangeable fixtures' based on an appeal that may or many not happen OR in the eventuality that Derby's subsequently submitted accounts breach FFP. As I'm sure you will know, they have until 18th August to submit those revised accounts, 3 games in to next season. Awesome work EFL.

 

[SAC]

Clearly you don't listen to the Price of Football podcast - as El Pres will tell you, Derby is the only league club in the country using this method. That's because it's, errr, wrong...

I don't and stand corrected. Although I still can't imagine it being sorted before the season starts.

 

[Easy 10]

Wycombe benefitted massively the season before last by gatecrashing the L1 playoffs thanks to the EFL ending the league early, and applying a Points Per Game forecast, which boosted Wycombe from 8th in the table up to 3rd (at the expense of Peterborough). Wycombe then won the playoffs to gain promotion to the Championship. And lo and behold, a mid-table L1 side promptly crashed and burned straight back down into L1.

It would be an outrageous pisstake if Wycombe benefitted AGAIN from the EFL shuffling paperwork around. They weren't good enough to make the playoffs, they weren't good enough to stay up, so no way should they get the benefit of swapping now with Derby.

 

[bhanutz]

Go read the original judgement, it addresses this in some detail - You'll also see that the club approached the EFL in 2018 and 2019 to discuss the policy (and the stadium sale, as it happens).

Obv Derby don't come out of this well whatever happens but the EFL are the governing body that have just issues a set of 'interchangeable fixtures' based on an appeal that may or many not happen OR in the eventuality that Derby's subsequently submitted accounts breach FFP. As I'm sure you will know, they have until 18th August to submit those revised accounts, 3 games in to next season. Awesome work EFL.

Derby and the MASSIVE should be thrown out of the football league for their continuing CHEATING.

 

[portslade seagull]

https://www.efl.com/news/2021/june/-derby-county/

An independent Disciplinary Commission has delivered its verdict on sanctions for Derby County relating to ongoing disciplinary proceedings.

In May, an Independent League Arbitration Panel ruled 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.

Tonight, the Disciplinary Commission has announced that the sanction to be imposed in respect of those breaches, is a financial penalty of £100,000 to be paid to the EFL and a reprimand for the Club as to its future conduct regarding the preparation of its Annual Accounts.

In addition, the Club has also been ordered to file restated accounts for financial years ending 30 June 2016, 2017 and 2018 that meet the requirements of FRS102, together with updated Profit & Sustainability calculations if necessary.

Both Derby County and the EFL have the right to appeal that sanction decision.

That being the case, ahead of the publication of the 2021/22 season fixture lists on 24 June at 9am, the EFL can confirm that it has developed an interchangeable fixture list for Derby County and Wycombe Wanderers, while the disciplinary process is finalised.

The fixture list for both the Championship and League One will be published in full based on the 2020/21 final standings, pending any appeals relating to this decision.


In plain English: I guess Derby need to re-do sums and show they didn't break FFP rules in 2016/17/18...

If they are anything like Palace the accounts will be produced in 2025