Derby charged with exceeding permitted losses | Page 4 | Vital Football

Derby charged with exceeding permitted losses

Southern red said:
im not sure the EFL will have the bottle to push this, but with saracens not only relegated but 35 point fine and 5mil fine it shows the powers that be are clamping down...will football have the stones to follow suit?
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The powers that be who you allude to are the other Clubs; Premiership Rugby is an entity which, until very recently, was owned entirely by the 12 Premiership Clubs and Newcastle.

It is not the authorities who Saracens have cheated, its the other Clubs.

Go back five years and there was an audit which eventually found out that two teams had breached the Salary Cap; the report was never made public but everyone and his dog knows that the two Clubs were Saracens and Bath.

There was unrest with the other Clubs so Saracens eventually came out and gave assurances that there would be no repeat; certainly not, they managed a whole season before breaching the cap again in the 16/17 season and every season since.

All of those hypocrites who think Saracens have been dealt with harshly, particularly the ones in the Totteridge area, should take a very long look at what happened to Exeter during the corresponding time frame; and then take a long hard look at themselves.

A Club with an innovative owner and a brilliant coach could not win a trophy because they had to keep on releasing players to comply with the Cap.
 
Woanz said:
What an utter ****. He seems so shady he could even scam credit report clanger the scammer.
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This is a man who made his initial fortune by selling Stock Market Tip Sheets and then betting on the tips; something which is now highly illegal.

In the good old days you could buy shares on credit and not pay anything for two weeks; this meant it was possible to buy shares, watch the share price rise, and then sell them, pocketing the profit without paying out a penny.

Once the mugs who purchased the Tip Sheets started buying up the shares, mainly in what is the AIM market today, the prices would inevitably rise.

Wray describes the time as not something he was particularly proud of; Yeah, I bet.
 
mao tse tung said:
This is a man who made his initial fortune by selling Stock Market Tip Sheets and then betting on the tips; something which is now highly illegal.

In the good old days you could buy shares on credit and not pay anything for two weeks; this meant it was possible to buy shares, watch the share price rise, and then sell them, pocketing the profit without paying out a penny.

Once the mugs who purchased the Tip Sheets started buying up the shares, mainly in what is the AIM market today, the prices would inevitably rise.

Wray describes the time as not something he was particularly proud of; Yeah, I bet.
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If I had thought that up I would be very proud of myself to be honest.
 
Derby County may have incurred losses of as much as almost double the permitted £39 million for a three-year period after introducing an “unusual” accountancy policy for players.

Last week Derby were charged by the Football League with a breach of its rules that involves the valuation of their Pride Park Stadium. Derby responded on Friday night by declaring the EFL charges “unlawful”, with the matter likely to end in court. But The Times understands the club may have suffered a further £30 million in losses in the three seasons up to June 2018 because of an accounting policy said to be unique to the English game.

Most clubs have a policy which recognises a player is worth nothing at the end of their contract, so his value decreases in proportion to the length of time left on his deal.

It means if a £10 million player signs a four-year contract, the club calculates a loss of £2.5 million a year. But Derby introduced a policy at the start of the three-year period in question that involved applying “residual values” with an amortisation rate, sources say, nearer 10 per cent.

If the EFL calculates Derby’s losses using the standard amortisation rate, it could potentially mean an even greater breach of its profit and sustainability rules.

Kieran Maguire, a lecturer in football finance at Liverpool University, who alerted the EFL to the introduction by Derby of “residual values” in June 2018, described it as an “unusual accountancy practice”, even if it is not illegal.

The Sky Bet Championship club avoided sanctions over its stadium sale by using a company owned by the chairman and owner, Mel Morris, to buy Pride Park for £81.1 million. As The Times revealed last week, however, an independent valuation commissioned by the EFL is said to have come in at about £49 million.

If found guilty, Derby could be hit with a points deduction. Birmingham City, their Championship rivals, were deducted nine points last season after being found to have breached the EFL’s profitability and sustainability rules. The EFL said that the club had incurred losses of nearly £48.8m between 2015 and 2018 — almost £10 million more than the accepted level.

Derby last night declined to comment but they made it clear last Friday that they would ”strongly contest” the charges.
 
radfordinlondon said:
Agree with all of that but plumbs is right(fook me how annoying is that). Norf landan is about lefty metropolitan metrosexuals patronising everyone else, particularly anywhere north of watford, while stealing their money.

East landan with the pearly wotnots are scum mainly because of wet spam and the tendancy to get extreme.

Landan is all shit but have to know what shit is where and not get your shit all mixed up
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Nah, I went there once, they are all kokanee wankaz.
 
JC21 said:
Derby County may have incurred losses of as much as almost double the permitted £39 million for a three-year period after introducing an “unusual” accountancy policy for players.

Last week Derby were charged by the Football League with a breach of its rules that involves the valuation of their Pride Park Stadium. Derby responded on Friday night by declaring the EFL charges “unlawful”, with the matter likely to end in court. But The Times understands the club may have suffered a further £30 million in losses in the three seasons up to June 2018 because of an accounting policy said to be unique to the English game.

Most clubs have a policy which recognises a player is worth nothing at the end of their contract, so his value decreases in proportion to the length of time left on his deal.

It means if a £10 million player signs a four-year contract, the club calculates a loss of £2.5 million a year. But Derby introduced a policy at the start of the three-year period in question that involved applying “residual values” with an amortisation rate, sources say, nearer 10 per cent.

If the EFL calculates Derby’s losses using the standard amortisation rate, it could potentially mean an even greater breach of its profit and sustainability rules.

Kieran Maguire, a lecturer in football finance at Liverpool University, who alerted the EFL to the introduction by Derby of “residual values” in June 2018, described it as an “unusual accountancy practice”, even if it is not illegal.

The Sky Bet Championship club avoided sanctions over its stadium sale by using a company owned by the chairman and owner, Mel Morris, to buy Pride Park for £81.1 million. As The Times revealed last week, however, an independent valuation commissioned by the EFL is said to have come in at about £49 million.

If found guilty, Derby could be hit with a points deduction. Birmingham City, their Championship rivals, were deducted nine points last season after being found to have breached the EFL’s profitability and sustainability rules. The EFL said that the club had incurred losses of nearly £48.8m between 2015 and 2018 — almost £10 million more than the accepted level.

Derby last night declined to comment but they made it clear last Friday that they would ”strongly contest” the charges.
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Fine. let them contest the charges and have the points deduction next season to ensure they do fuck all next season as well.
 
ZedRed said:
Fine. let them contest the charges and have the points deduction next season to ensure they do fuck all next season as well.
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The FFP losses are calculated over a rolling three years, therefore I would assume that if you make a massive loss in one year, you would be penalised for three years, unless you can bring things back into line.
 
JC21 said:
Derby County may have incurred losses of as much as almost double the permitted £39 million for a three-year period after introducing an “unusual” accountancy policy for players.

Last week Derby were charged by the Football League with a breach of its rules that involves the valuation of their Pride Park Stadium. Derby responded on Friday night by declaring the EFL charges “unlawful”, with the matter likely to end in court. But The Times understands the club may have suffered a further £30 million in losses in the three seasons up to June 2018 because of an accounting policy said to be unique to the English game.

Most clubs have a policy which recognises a player is worth nothing at the end of their contract, so his value decreases in proportion to the length of time left on his deal.

It means if a £10 million player signs a four-year contract, the club calculates a loss of £2.5 million a year. But Derby introduced a policy at the start of the three-year period in question that involved applying “residual values” with an amortisation rate, sources say, nearer 10 per cent.

If the EFL calculates Derby’s losses using the standard amortisation rate, it could potentially mean an even greater breach of its profit and sustainability rules.

Kieran Maguire, a lecturer in football finance at Liverpool University, who alerted the EFL to the introduction by Derby of “residual values” in June 2018, described it as an “unusual accountancy practice”, even if it is not illegal.

The Sky Bet Championship club avoided sanctions over its stadium sale by using a company owned by the chairman and owner, Mel Morris, to buy Pride Park for £81.1 million. As The Times revealed last week, however, an independent valuation commissioned by the EFL is said to have come in at about £49 million.

If found guilty, Derby could be hit with a points deduction. Birmingham City, their Championship rivals, were deducted nine points last season after being found to have breached the EFL’s profitability and sustainability rules. The EFL said that the club had incurred losses of nearly £48.8m between 2015 and 2018 — almost £10 million more than the accepted level.

Derby last night declined to comment but they made it clear last Friday that they would ”strongly contest” the charges.
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You would have thought that the EFL would force clubs to have a standard policy on player valuations. It amazes me they introduce FFP, but leave so many loopholes.
 
Lienking said:
The FFP losses are calculated over a rolling three years, therefore I would assume that if you make a massive loss in one year, you would be penalised for three years, unless you can bring things back into line.
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My point is, if they want to drag this out legally, it may take until next season before any punitive action is able to be taken.
 
Southern red said:
im no financial expert but surely you adhere to the rules or you dont

other teams seem to manage
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It's some of the other teams and their Chairmen that are driving this & rightly so.

Birmingham got fined last year for similar - Forest & Leeds faced a lengthy transfer embargo in the past & other clubs have faced sanctions too - if Derby & Wednesday have broken the rules, then they should be sufficiently penalised.
 
Pope John XXIII said:
Points deductions are generally 1 point for every million over the allotted £39m

Birmingham were just under £10m over so got 9 points. If Derby are nearly twice over the limit you could be talking 25 points+
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Can't see that being the case - Derby will wriggle out of it somehow.
 
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