Derby face drop over £80m Pride Park sale

DERBY are facing a 21-point deduction that could relegate them to League One after the EFL charged them with a breach of spending regulations yesterday. The Championship club’s proposed investment from Swiss-Turkish businessman Henry Gabay is also at risk. Derby are charged with breaking profit and sustainability (P&S) rules for the three-year period ending June 2018. EFL rules state clubs can lose no more than £39million over a three-year cycle. The EFL’s case against Derby is understood to rest on the controversial sale of Pride Park, which was sold to a company controlled by the club’s owner Mel Morris for £80m two years ago and leased back to the club. Following the sale, Derby recorded a pre-tax profit of £14.6m last April, which enabled them to comply with the P&S regulations. The EFL launched an investigation into Derby’s valuation of Pride Park at the start of this season, as their rules state that any property

sales and commercial deals included in club accounts must be at fair market rates.

Sportsmail has been told the EFL’s independent valuation deemed Pride Park to be worth around £50m. They have therefore accused Derby of overvaluing the asset by £30m. The club stand by their valuation and insist they complied with the rules throughout, so the stage is set for a lengthy legal battle. Derby’s case will be heard by a three-person independent panel, who have the power to impose a large fine and dock the club up to 21 points in line with the EFL’s fixed P&S tariffs, introduced three years ago. Derby are 10 points above the Championship relegation zone, so being docked 21 points would almost certainly lead to relegation. To compound their plight the club were close to securing additional investment from the Duet Group, a private equity firm owned by Gabay, which is now in jeopardy.