UK EFL Amortisation Appeal- EFL vs Derby (again)!


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Long story short, the EFL and Derby County are in and have been in a dispute for some time and this is unusual- they Account for Player Registration Amortisation using Residual Values as opposed to what seems to be the UK football Industry Standard of Straight Line- ie Transfer Fee/Contract=Annual Amortisation Cost.

There was also the dispute regarding the £81.1m Stadium Sale and leaseback but the EFL seem to have given up on that.

Interested in people's thoughts basically, FRS 102 etc- the EFL are appealing with respect to the Amortisation method used or maybe even aspects of that charge, which the EFL lost first time round.


Was stated last September that the EFL would be appealing but it begun today.



I certainly think that if they had to restate to Straight Line to recalculate FFP, they would fail the 3 years to 2019 and maybe to 2018- possibly beyond the 2018/19 season too. Could be an interesting Test case!

Does also have an angle of whether charges can be brought retrospectively. Kieran Maguire flagged this to the EFL in June 2018, they were aware of this as per Written Reasons potentially before then, but only brought this specific charge in January 2020.

 
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Hi @Fidget I hope you are well also.

EFL have won their appeal- though the Devil still very much in the detail!



Depending on the finer detail- Written Reasons would determine this, it could be the case that Derby are forced (possibly for P&S/FFP purposes only) their Accounts for the last 6 seasons, with respect to the Amortisation. Some estimates have a £30m gap between 2015/16 and 2017/18, ie that 3 year period- I've also seen £21m cited elsewhere.

Either would see them fail to 2019 and maybe to 2018, and not really tried to speculate for other periods, not helped by a lack of Club, Consolidated or Companies within the Group Accounts since 2019 (for the FY to 2018, but 2019 when they were released).

Where it goes from here who the hell knows- Derby and EFL cannot Appeal the decision, but the Sanctions can be- assume that goes for both, Sanctioning Hearing I think- EFL would like any penalty imposed by the conclusion of the season.
 

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