Liquid Gold
Well-Known Member
Deduct them 12 next year, promote Oxford or Lincoln and we’re half way safe already.
Serves them right, Keogh was a fucking idiot that night But you can't sack a player for sitting in the back of a car of a drink driver and not sack the actual driver because the drivers a more valuable asset.They also have to pay Keogh £2.3m for sacking him after the car crash.
Don't hate Derby necessarily..... they're just ran/owned by idiots, Something we can definitely relate to.Derby are the new whoever people hated before
Sheep shaggerDon't hate Derby necessarily
Who were their auditors, do you know? I'm guessing one of the big 4.Apparently it isnt that the contracts are not amortised, they are, but Derby have been including a residual value in the calculation which other clubs do not.
Normally 200k contract purchase over 2 years would mean amortisation of 100k per year
It seems Derby did a calculation something like this
Same contract but say Derby estimate player worth 100k at end of 2 years. Amortisation would be (200k less 100k) ÷ 2= 50k each year.
If the contract ends how could there be a known residual value? Their calculation is novel and doesn't it seems to me to agree with the company financial statements accounting rules. In this case a thing called FRS102
The financial statements will need to be restated, losses increased, etc. I would think that the Auditors can expect a regulatory visit it being a so high profile manipulation. The directors are at face value signing off accounts that are misleading in significant amounts
The disposal of the stadium seems to have passed inspection
No it wasn't actually was a Derby based firm called Smith Cooper audit ltd
We won't need to worry about the bottom the league next season, i have a feeling we're gonna be play off contenders!They’re definitely going to get a points deduction and it’s a win for us if it comes this season or next. We either start the season with Derby down loads of points or Wycombe still in the league.
Understated their losses by £30m over the 3 year FFP reporting period thanks to their 'creative' accounting.
Punishment must surely be severe.
Apparently it isnt that the contracts are not amortised, they are, but Derby have been including a residual value in the calculation which other clubs do not.
Normally 200k contract purchase over 2 years would mean amortisation of 100k per year
It seems Derby did a calculation something like this
Same contract but say Derby estimate player worth 100k at end of 2 years. Amortisation would be (200k less 100k) ÷ 2= 50k each year.
A significant difference that understated losses and therefore at first glance evaded EFL scrutiny. As I understand it Keiran Maguire first raised the question which got the EFL to look at it.
If the contract ends how could there be a known residual value? Their calculation is novel and doesn't it seems to me to agree with the company financial statements accounting rules. In this case a thing called FRS102
The financial statements will need to be restated, losses increased, etc. I would think that the Auditors can expect a regulatory visit it being a so high profile manipulation. The directors are at face value signing off accounts that are misleading in significant amounts
The disposal of the stadium seems to have passed inspection
Kind of makes you wonder about FFP regulations, their inspection, and enforcement- not up to it despite the win on this issue. The Derby issue goes back to financial statements for 2015 in the meantime Derby has benefitted every year since
if you were buying something that had a market value at the end of your useful life with it, then you could do thisThat surely can't be allowed can it? If the player leaves at the end of the contract that has to be classed as an asset disposal and so the calculations on the disposal would negate the residual value? Esp given the millions of pounds we're looking at. Such significant purchases surely wouldn't be just lumped into one class and then amortisation worked out as a percentage of the whole? Unless the entire purpose is to mislead by reducing amortisation values in the P&L account and/or to artifically raise asset values?
This is the kind of reason why I think profit is such a rubbish metric for working out tax - far too easily manipulated within the laws
if you were buying something that had a market value at the end of your useful life with it, then you could do this
The trouble is, once a contract runs down it has zero residual value
There is an argument for contract extensions, to extend the useful life, and then take the cost over the extended contract period, but not without that in place
That surely can't be allowed can it? If the player leaves at the end of the contract that has to be classed as an asset disposal and so the calculations on the disposal would negate the residual value? Esp given the millions of pounds we're looking at. Such significant purchases surely wouldn't be just lumped into one class and then amortisation worked out as a percentage of the whole? Unless the entire purpose is to mislead by reducing amortisation values in the P&L account and/or to artifically raise asset values?
This is the kind of reason why I think profit is such a rubbish metric for working out tax - far too easily manipulated within the laws
They were only incorporated in 2018 themselves!No it wasn't actually was a Derby based firm called Smith Cooper audit ltd
And a relegation about to be confirmedAside from any potential punishment, Derby must be in some serious financial trouble now. Accounts a year overdue, charges on all of their property. Nobody with any sense will want to take over either.
And a relegation about to be confirmed
I wonder if the EFL can explain how Derby managed to sign 5 players in the Dec transfer window despite being a year late submitting their accounts? No transfer embargo?...Aside from any potential punishment, Derby must be in some serious financial trouble now. Accounts a year overdue, charges on all of their property. Nobody with any sense will want to take over either.
Even if you ignore the accounts submission something was off about the way they went from not being able to pay wages to signing more players than anyone else without a takeover going through was a bit suspect to say the least.I wonder if the EFL can explain how Derby managed to sign 5 players in the Dec transfer window despite being a year late submitting their accounts? No transfer embargo?...
Derby County sign Teden Mengi, Lee Gregory, George Edmundson, Beni Baningime & Patrick Roberts
Derby County sign Teden Mengi, Lee Gregory, George Edmundson, Beni Baningime and Patrick Roberts on loan.www.bbc.co.uk
Erik Alonso: Derby County's proposed takeover by Spanish businessman called off
Derby County's takeover by Spanish businessman Erik Alonso is called off.www.bbc.co.uk
Derby take over fallen through.
now there's a surprise
Admin approaching possibly, which could be another 12 points on top of a points deduction for false accounting
They also have to pay Keogh £2.3m for sacking him after the car crash.
Erik Alonso: Derby County's proposed takeover by Spanish businessman called off
Derby County's takeover by Spanish businessman Erik Alonso is called off.www.bbc.co.uk
Derby take over fallen through.
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