EFL charge Derby over ffp

[Fraser_23]

DONT WORRY GUYS MEL WILL COUNTER SUE THEM AND GAIN £100 MILLION, MAKING 20MILLION PROFIT AND ALLOW US TO BUY THIS TURKISH GEEZA

[Millenniumram]

Daily Telegraph say we’re under threat of a 12 point deduction. Says the EFL had a valuation of the stadium at 50m. If our valuation wasn’t as legit as Mel claimed, then I think we’re in trouble.

[Finch]

80 million would be too much for the entire club. Trouble ahead.

[woody01530]

2 minutes ago, desirelines said:

If Mel wants to spend a daft amount of his own money on Derby, why should we be punished for it? EFL is a joke. 

I agree but the rules state different.

I've put before, 60% of turnover to wages limit that's it.

Turnover should be any money coming in, rich owner, so what.

[RoyMac5]

5 minutes ago, Sean said:

So it's all down to valuation and nothing else? If so I think we'll be fine if it was independently valued.

I wonder if it's down to 'Marriage value'?

Quote

Marriage value is applicable to leasehold properties. If the sum of leasehold and freehold interests is described as the total property value, then marriage value is the increase in the total property value following a lease extension or collective enfranchisement.

S. 9 of the Leasehold Reform Act 1967 stipulates that in cases of lease extension or collective enfranchisement, the marriage value be split equally between freeholder and leaseholder since the uplift in value only arises from the landlord’s action to grant the new lease or sell the freehold. The legislation also stipulates that where the remaining lease length is greater than 80 years, the marriage value be nil.

Not sure I quite get it, but maybe this is the amount that is at issue?

[Andicis]

Just now, Finch said:

80 million would be too much for the entire club. Trouble ahead.

Thanks for your expert analysis. I'm sure you know much more than the independent valuer.

[Owd miner]

Dun't worry everyone... iv'e just had an email .It sez i've got £20 million pounds in a Nigerian bank account , I've sent em all my details so it should be available at any time. so when i ger it ill send it Mel

[RamNut]

1 hour ago, RadioactiveWaste said:

I can't quite wrap my head round this bit. I run my cars into the ground by skimping on servicing and buying off-brand parts. Mel appears to have spunked too much of his ambition on being as successful at owning a football club as everything else. The "cleverness", the non-standard accounting, the absurd changes in focus, policy, manager etc.

The only thing keeping me from blowing up is apparently it's his own money he's wasted (although i'm half expecting to find out it was all credit and we're actually massively in debt the way this season is going)

 

Everything else, however I totally agree with, this could be very damaging both short and long term.

Well....there was the little matter of the loan from MM in the accounts which was heading towards £100m 

p.s. I might have a car you’d be interested in.?

[JuanFloEvraTheCocu'sNesta]

So when Morris and Pearson are telling the fans we are within all of the limits are they lying or just incompetent?

[EranioIsGod]

Well. It was coming for us sooner rather than later wasn't it... 

[bimmerman]

13 minutes ago, ossieram said:

With their over dramatic reactions, they are only adding to the crap in their lives that they are trying to escape from.

This will probably drag on for a few months and there is nothing we fans can do to change the outcome, so relax and wait to see what happens before going over the top.

I just think it's banter personally. We all knew it was coming ?‍♂️

Could be worse, could be from Nottingham 

[Andicis]

2 minutes ago, JuanFloEvraTheCocu'sNesta said:

So when Morris and Pearson are telling the fans we are within all of the limits are they lying or just incompetent?

Or the EFL has it wrong and they were right? 

[ColonelBlimp]

Neither, telling the truth is another option you know?

[jono]

12 minutes ago, Sean said:

So it's all down to valuation and nothing else? If so I think we'll be fine if it was independently valued.

I have a sense that maybe Mel isn’t popular in the efl .. wasn’t he trying to fight for more TV self determination. 

Not withstanding the rights and wrongs of accounting games, are there enemies in the association who’d just love to get him. ? It all sounds very childish but I can’t help thinking personalities and influence are everything these days ? 
 

[gccrowdpleaser]

All this will blow over. The EFL cannot argue that it is a loophole. They will say that it is not in the spirit. They will give us a fine and then they will introduce new legislation that means that in future the valuation must be done by a stated independent body contracted to the EFL.

Everyone else will kick off and say it's unfair.

Done. Worry over.

Mark my words.

[OohMartWright]

How about we all wait for the final verdict before wetting the bed and bad-mouthing Mel Morris. Innocent until proved guilty and all that. Imagine how stupid everyone will look if the club is found not guilty. 

[RamNut]

48 minutes ago, Bazal77 said:

if the efl have charged us because we have sold an asset for a larger fee than what the efl consider it is worth, then surely they have to look at all sales of assets of all clubs. 
Shouldn’t players be classed as assets? 
If you do this to one club then all clubs should be treated the same, next tine a player is sold for big bucks what’s to stop someone complaining that he wasn’t worth that much and the efl having to value the player?
Or am I just being petulant 

Signing or selling  a player involves a genuine commercial offer and acceptance

......unless you’re Watford / Udinese 

[G STAR RAM]

7 minutes ago, woody01530 said:

Just guessing really but that must be it.

At 80m Derby made a 12m profit.

At 41m they would have made another massive loss of 27m so over the 3 years way over the limit.

Just can't think of anything else.

Just having a quick look at the accounts and I've got the losses at

2016 £14m

2017 £  7m

2018 £25m after adjusting for stadium

So a total of £46m across the 3 years.

I was of the understanding that from these losses certain expenditure, such as academy costs, could be deducted.

I seem to remember that Ramblur estimated these costs to be about £2m per year.

If that was correct that would be £6m over 3 years bringing our losses down to £40m.

I thought the allowable loss over 3 years was £39m.

If my calculations are correct (bear in mind I've just done these now whilst looking at the accounts on my phone) then we would be £1m over the limit?

Can someone help me out here as I am obviously missing something!

[SillyBilly]

TBH it is hardly surprising. I mean for the Sam Rush thing to progress to where it did was plain bizarre in itself. Add into that actually having to sell the stadium in the first place. Not paying wages on time; I run an SME, that just doesn't happen in business unless sheer incompetence or disaster brewing, the wage bill is the first thing allocated for each month. And of course years of hiring and firing at will and scratch-your-head type signings with massively inflated agent fees. I really like Mel and he is obviously massively more successful than anyone of us mere plebs but it has almost been a perfect demonstration of how not to run a business over the last few years. We used to take the michael out of Forest for Fawaz and the storylines Forest seemed to constantly generate under his tenure but the truth is we have been no different.

 

[May Contain Nuts]

11 minutes ago, JuanFloEvraTheCocu'sNesta said:

So when Morris and Pearson are telling the fans we are within all of the limits are they lying or just incompetent?

They were telling the fans what the EFL had told them. With everything signed off and approved by the governing body, which it was, we were within FFP.

Passing on that information isn't lying or showing  incompetence, it's stating facts.

The lying and incompetence lies with the governing body who in changing the rules and trying to apply punishment after the event have in addition to the above also shown  themselves up as a corrupt bunch of bamfords more interested in making examples of people than acting in the interests of the clubs they're supposed to represent.

duck the EFL