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More Derby County trouble...


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20 hours ago, Raminpeace said:

I’ll be surprised if we get a massive points deduction. I think the judgement is referred back to the disciplinary committee who cleared us the first time. 

furthermore bloggers like Swiss Rambler and Kieron Maguire were openly discussing Derby’s method of accounting. It wasn’t secret. If they knew then the EFL can’t really pretend that they were unaware

football club accounts are weird because the depreciation of player values dwarfs the trading figures. The method of accounting doesn’t really make sense whichever method is used.
 

For example, we sign Tom Ince for 4.5m on a 3 year deal. Under EFL methods we have to include for that as a 1.5m loss each year. In the final year we flog him for 10m to Huddersfield, and so the figure is revised to a massive profit. Under Derby’s method, we probably reckoned he was still worth 4.5m at the end of year 1 and the end of year 2 and that would be justified by the fact we then sold him for 10m. the profit we made in the final year is less but the difference in the accounts is that we avoided accounting for imaginary losses of 1.5m for two years running. When a club can only lose 13m a year under FFP then that one player makes a big difference. Is that cheating or just more appropriate accounting? There was nothing in the EFL rules that stated that straight line depreciation was a given requirement. The failure was to not get the express consent of the league......and Steve Gibson.

Are you suggesting the EFL have got a clue?

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22 hours ago, Raminpeace said:

I’ll be surprised if we get a massive points deduction. I think the judgement is referred back to the disciplinary committee who cleared us the first time. 

furthermore bloggers like Swiss Rambler and Kieron Maguire were openly discussing Derby’s method of accounting. It wasn’t secret. If they knew then the EFL can’t really pretend that they were unaware. 

football club accounts are weird because the depreciation of player values dwarfs the trading figures. The method of accounting doesn’t really make sense whichever method is used.
 

For example, we sign Tom Ince for 4.5m on a 3 year deal. Under EFL methods we have to include for that as a 1.5m loss each year. In the final year we flog him for 10m to Huddersfield, and so the figure is revised to a massive profit. Under Derby’s method, we probably reckoned he was still worth 4.5m at the end of year 1 and the end of year 2 and that would be justified by the fact we then sold him for 10m. the profit we made in the final year is less but the difference in the accounts is that we avoided accounting for imaginary losses of 1.5m for two years running. When a club can only lose 13m a year under FFP then that one player makes a big difference. Is that cheating or just more appropriate accounting? There was nothing in the EFL rules that stated that straight line depreciation was a given requirement. The failure was to not get the express consent of the league......and Steve Gibson.

 

I'm glad it's not just us who thinks this about Gibson then. Funny how he didn't start moaning until his parachute payments ran out!

 

With regards to player sales, amortisation and whether or not it's cheating the system, I don't think it is. I agree with FFP and P&S, but I don't agree with the figures imposed. They are too low, especially when clubs in the Championship are trying to compete with others receiving parachute payments. Where did the 3 teams relegated from the PL end up this year? 1st, 2nd and 6th. How are othes supposed to compete with that? Rhetorical question I know. So if some cute accountancy can be applied, without breaking regulations or legislation (or the law of course), then that's what Accountants are paid to do.

 

The whole game needs a financial reset, otherwise you and us won't be the last two teams facing financial uncertainties. And as fans of football - irrespective of who we support - that's a real shame. The club is the heart and soul of the local community and beyond that a place to meet with friends and share the highs and lows that football brings. Football is eating itself alive.

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