Derby facing EFL investigation over "financial irregularities"

ERIMUS1876 said:
In April, Boro chairman Steve Gibson proposed for measures to be taken to increase financial transparency among clubs in The Championship. This included allowing accountants from clubs to be allowed to review their rivals' finances. Gibson was unhappy with Derby, Sheffield Wednesday and Aston Villa claiming they have breached the EFL’s profitability and sustainability regulations (formerly known as Financial Fair Play - FFP - rules).

On the basis that Boro had stuck by the rules of the EFL his view was that if his club were meeting the EFL's own laws he understandably expected everyone else to do the same. If they didn't, he expected them to be punished ... and they weren't.

Gibson's proposal was heavily defeated by the 24 clubs which is possibly an indication that more than just 3 clubs were not abiding within the EFL rules.

Steve Gibson then threatened to take Derby to court (this revolved mainly around their owner paying £80M for the club that had previously been valued at £40M with the payment to be repaid as a long term loan ... and that £80M being used for player purchases / payments).

The latest is that the EFL are now investigating what has gone on at various clubs.

Steve Gibson has a long term track record of been ahead of the game ... and I think he has done it again here and opened up a can of worms for the EFL who have seemingly turned a blind eye to the manipulation (at best) and complete disregard (at worst) of their own rules.
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If many of the clubs in the champ were circumventing these rules, these next few years could be the perfect time for a club with no debt and significant resources to get promoted. Good job Donald owes the club that £20m.
 


In the latest twist to this Middlesbrough Chairman Steve Gibson has now sent a legal letter to the EFL outlining Boro's case. This is a significant escalation by Boro who effectively look like suing their own league for failing to apply the league rules.

Given that Boro finished 7th and Derby were in the top 6, the scale of the potential claim will be interesting.
 
Statement from the Derby website:
Derby County Football Club has adhered to the EFL’s Profit and Sustainability Rules with respect to the sale of its stadium.

The stadium was subject to an independent professional valuation before sale, nearly 18 months ago, and the EFL indicated in writing that the arrangement was in accordance with its rules and regulations.
The EFL cannot now, long after approving the arrangements, suggest Derby County breached the rules.
The Club regrets that Middlesbrough Football Club have said they are suing the EFL over the matter, but that is a matter for them. Derby County offered to show Middlesbrough its financial records but they declined the invitation and appear to have decided to bring a claim against the EFL instead.
The outcome of that action could not now affect Derby County, which has already had its financial returns for the relevant season approved by the EFL, and the Club is solely focussed on the current season.
The Club will not be making any further comment at this time.
 

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