Derby Cleared of All Charges.

JM14 said:
They seem to be spending an absolute fortune to just finish mid table. Think they will be in real bother in a few years if they dont go up.

The Rooney thing has always confused me, for the wages they are paying him you could buy 3/4 top players for this level that would probably guarantee you promotion anyway, instead they are giving it to Rooney who is well past his best and only at the club because they are daft enough to give him that much money. He will be on 3x the wages of the likes of Mitrovic, Phillips, Watkins, Benrahma etc
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Think they are gambling on a sale to a US hedge fund otherwise they will be in deep financial trouble.
 
I was expecting this given I saw a transfer rumour earlier saying that they were looking to sign Blackburn’s gk for 4 mil. Obviously they had been given the nod at some point earlier that they were to be cleared.
 
1finny said:
It was an independent commission who said they had done nothing wrong.
It’s tricky isn’t it?
All chairmen have access to the rules. Morris has interpreted it one way and is deemed to be correct.
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Sorry, my comment about Derby's chief exec being on the EFL board was in regards to the original over valuation of the stadium being signed off by the EFL.

It's a tough one but fair play if they have found a way around FFP. I would still be very worried if I was a Derby fan though, especially if stories of this £30m loan are correct. Apparently the club was also under a "soft" transfer embargo until the verdict was announced.

It's my understanding, and I may be wrong but the independant tribunal is made up of 3 people. 1 from the club, 1 from the EFL and 1 independant. If so, wonder who the one from the EFL was 😁😁.
 
I think this was expected. My understanding was the loophole Derby found was cleared by the EFL prior to them using it. The valuation appears questionable but I presume the independent panel were only looking at the process- not the valuation.

The Sheff Wed decision was different in how they reported in a different financial year to the sale, therefore directly manipulating the FFP through incorrect reporting rather than exploiting a loop hole.

I wonder if the loophole will remain open, or new rules be implemented much more swiftly than the investigation took to be completed. Otherwise there may be a risk that a rich owner via a subsidiary may want to purchase everything in sight at overinflated costs to fund a promotion push.
 
Sheriff_John_Bunnell_ret said:
Has there been any comment about why the ground was valued at such a high level?
And are we going to sue the EFL now?

It really is time to end the nonsense that is FFP.
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I don’t think we can sue the EFL as this was an independent panel.
Don’t know the detail of the valuation (what would happen if he sold it for residential etc) but, in general terms, if a buyer believes it is worth 80m it’s difficult to argue with.
 
Anterimus said:
It's almost as if Derby's chief exec is on the EFL Board or something.......
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Yes that was my thought as well.
Let’s face it the whole thing stinks, we always mock how corrupt football in Brazil Argentina italy spain etc is but football in this country is so corrupt it’s untrue.

Italy denoted their biggest cash cow in juventus Could you see Man U or Liverpool ever being demoted it just wouldn’t happen.

but this is a complete and utter joke.
 
1finny said:
I don’t think we can sue the EFL as this was an independent panel.
Don’t know the detail of the valuation (what would happen if he sold it for residential etc) but, in general terms, if a buyer believes it is worth 80m it’s difficult to argue with.
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So if it was previously valued at £40m and sold to their chairman for £80m, does anyone know if the club coughed up their capital gains tax on the profit?

And what's to stop him selling it back to the club for £40m and rinse repeat etc?
 
1finny said:
I don’t think we can sue the EFL as this was an independent panel.
Don’t know the detail of the valuation (what would happen if he sold it for residential etc) but, in general terms, if a buyer believes it is worth 80m it’s difficult to argue with.
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The valuation would have been carried out by a valuation and surveying firm. That's company law, nothing to do with football administrators. They consider how much land is included with the stadium, what the replacement value would be and what the land could be used for if it wasn't a football stadium.

I know it's a sore subject but it would be hard to find any fault with what Derby did if the legal process was watertight.
 
sprouts said:
So if it was previously valued at £40m and sold to their chairman for £80m, does anyone know if the club coughed up their capital gains tax on the profit?

And what's to stop him selling it back to the club for £40m and rinse repeat etc?
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Companies aren't liable for CGT, just corporation tax.

Since the asset value of the stadium, now on the books of Mel Morris' company is £80 million, then that company would struggle to make a case for selling it for £40 million. Companies don't, and don't need to revalue assets. Not revaluing assets can help to minimise corporation tax.
 
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Steve hasn't injected equity into the Club - £8m per season is permitted under FFP in Championship.
He doesn't even stretch to the obvious limits of FFP.

He guarantees losses made in the form of loans (similar to Derby's £30m). He isn't putting money in or buying assets.
He could use Rockliffe or Bulkhaul (Other operating Companies in GO'N) or another Company to buy The Riverside stadium and Training Facility from MFC as a way of injecting money into MFC.
He could simply inject equity.

He has chosen not to, which is absolutely his prerogative. But he shouldn't moan because other owners will invest within the "rules".
And so long as he doesn't invest, we will plod along making losses that he can only shore up with further guarantees/Group Undertakings. It is just a horrible ever decreasing circle this way.
 
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