Derby County: EFL appeals over decision to clear Rams of spending breaches
- Published
Derby finished 10th in the Championship in the 2019-20 season
The English Football League is appealing against a decision to clear Derby of breaching spending rules.
In August an independent disciplinary tribunal said the Championship club did not break regulations over its valuation of Pride Park.
But the EFL is challenging the dismissal of a second charge over how the Rams measured the value of players.
The appeal is specific to the club's policy on "amortisation of intangible assets", an EFL statement explained.
Most clubs spread the transfer fee they have paid for a player over the life of his contract, meaning they are worth 拢0 at the end of their deal. For example, a player bought for 拢10m over a five-year contract would cost 拢2m a year but have no value at the end of that contract.
Derby assigned a residual value - how much they expected to receive in a transfer fee - to a player at the end of the contract, thus lowering their amortisation costs.
After being exonerated by the independent panel, Derby said the English Football League's "unnecessary" charges against the club will have cost the league "hundreds of thousands of pounds".
However, the commission's written reasons for its decision stated the EFL was entitled to bring both charges against the club.
Owner Mel Morris' purchase of Pride Park for 拢80m enabled Derby to meet the EFL's spending rules, which permit Championship clubs to lose 拢39m over a three-year period.
The stadium was previously listed as an asset worth 拢41m on the club's books.