Boro to sue the EFL

RichD said:
If it's not against EFL rules I can't see it going any further..
Click to expand...

What Derby did was very debatable, as the ground, which was disclosed as being at valuation in the accounts (ie the amount you could expect in a sale to a third party), was sold to a related company at a far higher value. It's therefore a valid argument the sale was made at an excess price purely for the purposes of manipulating profit to meet FFP rules.
 


If there's a loophole to exploit, people will always find a way. The EFl appear to conduct their running of the leagues like Sunday morning football. If something were to come of this, don't be surprised to see Derby dragging the EFL through court as well, saying they've done nothing wrong.
 
RichD said:
If it's not against EFL rules I can't see it going any further..
Click to expand...
It’s not apparently but only because the useless bastards at the EFL had naively failed to anticipate clubs circumventing ffp in such a way. But derby have the cash in the bank now, a heavily invested in squad, Philip Cocu and Wayne Rooney recruited and paid for. Hardly a level playing field and a smack in the mouth to clubs like Boro who adhere to the principles of fair play.

They will of course now introduce a new rule. It’s kind of pertinent to us if and when the take over goes through. And I’m sure what with this and the Bolton and bury situations of late the authorities will be keeping a very close eye on our finances to ensure we (and any other clubs that change hands or new backers) are 100% compliant moving forward.
 
Grumpy Old Man said:
What Derby did was very debatable, as the ground, which was disclosed as being at valuation in the accounts (ie the amount you could expect in a sale to a third party), was sold to a related company at a far higher value. It's therefore a valid argument the sale was made at an excess price purely for the purposes of manipulating profit to meet FFP rules.
Click to expand...

But surly what something is worth and what someone is prepared to pay for it isn't against the EFL rules. I get it might be underhanded or not in the spirit of the game, however Man city, PSG and loads other clubs have built themselves up doing something very similar..
 
Boro didn’t give a toss about FFP when they were spending shitloads and piling loss after loss onto themselves trying to get promoted. Was it £15 million on Assombalonga? Now the parachute money has stopped and they’re suddenly trying to act like some paragon of virtue.
 
RichD said:
But surly what something is worth and what someone is prepared to pay for it isn't against the EFL rules. I get it might be underhanded or not in the spirit of the game, however Man city, PSG and loads other clubs have built themselves up doing something very similar..
Click to expand...

Not if the sale is to a third party. However, when it's o a company under common ownership, it breaks the normal principle (in tax law at least), that the sale should be at fair value, ie the amount a third party would be prepared to pay. Pride Park was sold for £24m above its valuation in Derby's accounts, which were stated to be a valuation on an arms length basis. It's inconceivable that the value of the ground rose by that amount in less than 12 months at a time when property values are, by and large, falling.It's something they're trying to clamp down on. I think City were actually fined for it, and I'm pretty sure PSG copped a transfer embargo.
 
What an absolute shambles football is, from FIFA down to the bottom. Bent as fuck, rules open to interpretation. It needs an enormous kick up the arse.

As Cyndi Lauper sang, ‘Money Changes Everything’. It truly is the root of all evil.

Can’t wait until we’re minted. :cool:
 
Father Jack Hackett said:
Morris is clever with the likes of this and the Rooney deal. I can see how it would upset other teams but he's just exploiting loopholes.
It shows what a farce FFP is though.
Click to expand...
That’s why Boro are doing the right thing.
It might cost them some money and see Refs suddenly “make mistakes” during their games but it will highlight the shambles the FL are
Grumpy Old Man said:
What Derby did was very debatable, as the ground, which was disclosed as being at valuation in the accounts (ie the amount you could expect in a sale to a third party), was sold to a related company at a far higher value. It's therefore a valid argument the sale was made at an excess price purely for the purposes of manipulating profit to meet FFP rules.
Click to expand...
What if it was put up for auction and the winning bidder (the current owners) were ran up by other bidders. Then the valuation of the stadium might seem extreme but it was actually a bidding war and they got carried away
Morse said:
What an absolute shambles football is, from FIFA down to the bottom. Bent as fuck, rules open to interpretation. It needs an enormous kick up the arse.

As Cyndi Lauper sang, ‘Money Changes Everything’. It truly is the root of all evil.

Can’t wait until we’re minted. :cool:
Click to expand...
I want us to use our money for evil. Exploit every rule we can
 
Last edited:
Grumpy Old Man said:
Not if the sale is to a third party. However, when it's o a company under common ownership, it breaks the normal principle (in tax law at least), that the sale should be at fair value, ie the amount a third party would be prepared to pay. Pride Park was sold for £24m above its valuation in Derby's accounts, which were stated to be a valuation on an arms length basis. It's inconceivable that the value of the ground rose by that amount in less than 12 months at a time when property values are, by and large, falling.It's something they're trying to clamp down on. I think City were actually fined for it, and I'm pretty sure PSG copped a transfer embargo.
Click to expand...

They should have sold it for £32m above valuation and renamed it 32Red Pride Park.
 
I remember when the EFL told QPR they owed them loads of money, QPR retorted we don't give a ferk because we're in the premier league now. So the EFL told them that they would be chucked out should they be relegated which they promptly were and the EFL did nowt.
 
Make no mistake, Steve Gibson is a very shrewd operator.

Boro have not previously broken any FFP rules despite what some posters on here would like to believe. Gibson simply would not be taking legal action against the EFL if they had.

Gibson is making a one-man stance unlike other spineless owners have kept their heads below the parapet and even voted against any enquiry at the EFL AGM in June.

The EFL have set their rules. Those rules have been broken. No action has been taken against those breaking the rules. That clearly is unfair for those who have played within the rules like Boro (especially finishing 7th and seeing Derby finishing 6th and thereby the play-offs).

It's over to the EFL now.

Yes there maybe repercussions (indirectly) against Boro ... but it's a bigger issue than that. If this goes unchallenged it opens the door still wider for clubs to take advantage in the future at which point our once great national sport will be lost forever (if it isn't already).
Roker Pierre said:
Clubs have sold their grounds and rented them back for ages.
Click to expand...
They haven't sold them for twice the value the asset was worth!
 
Boro won’t get anywhere , loop hole so clubs will exploit it until the rules are changed ...they will then find other loophole ...financial fair play introduced to help the poor exploited by the rich (sounds a bit like tax )
 
Isn't this what Man City did as well with Stadium sponsorship? Both EPL and EFL need to get the rules sorted. Clubs have money and lawyers who can get round the rules.
 

Back
Top