Derby facing EFL investigation over "financial irregularities"

Just had a quick look. It's murky to say the least. It looks as though, from the disposals figure, Pride Park was valued at £56m (forget the depreciation number, it's the cost that matter here). This looks, on face value, like a sale to a related party at a higher than arms length price, presumably to create enough profit in DCFC to enable them the meet the FFP loss limit. This is far from normal practice, which is that transactions between companies in the same group or under common ownership take place at an arms length valuation. It's highly likely that HMRC will also take an interest in the transaction to determine whether there has been a breach of transfer pricing regulations.
So the EFL are worried that the Derby owners are putting money into their club, but they were quite happy to allow Steve Dale to buy Bury, even though 43 out of his 51 previous companies had gone into liquidation. Maybe they need to change their priorities
It's more the reasons for doing it. This looks awfully like an artificial transaction designed solely to circumvent the provisions of FFP.
 
Just had a quick look. It's murky to say the least. It looks as though, from the disposals figure, Pride Park was valued at £56m (forget the depreciation number, it's the cost that matter here). This looks, on face value, like a sale to a related party at a higher than arms length price, presumably to create enough profit in DCFC to enable them the meet the FFP loss limit. This is far from normal practice, which is that transactions between companies in the same group or under common ownership take place at an arms length valuation. It's highly likely that HMRC will also take an interest in the transaction to determine whether there has been a breach of transfer pricing regulations.


It's more the reasons for doing it. This looks awfully like an artificial transaction designed solely to circumvent the provisions of FFP.
Ta for the explanation.

Did Man City transfer some sponsorship revenue from the etihad stadium to themselves?
 

homeless kid

Striker
Ta for the explanation.

Did Man City transfer some sponsorship revenue from the etihad stadium to themselves?
The man city stuff stinks.

Etihad this, etihad that...

They've spent so much money, basically they've done what I used to do on Chapman 97/98 when you had a cheat to get unlimited money.

Even on a computer game I felt guilty about doing it.

I'm sure a lot of the mcfc fans, particularly those who were there in their 3rd tier days, have mixed feelings about it all
 

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