Big shadow of uncertainty is still hanging over the Rams
DERBY County are seven games into their Championship campaign and have collected seven points.
Their one League victory came away to Hull City, 1-0, and they have drawn with Huddersfield Town, Middlesbrough, Nottingham Forest and West Bromwich Albion.
The players, under manager Wayne Rooney, are battling for every point but this is against a backdrop of uncertainty surrounding the club as a long-running dispute with the EFL rumbles on.
It is being reported that the Rams are facing a points deduction for alleged breaches of financial fair play rules and the two parties remain in talks over settling the matter.
Meanwhile, Derby remain under a strict transfer embargo that hampered Rooney’s squad-strengtening plans during the summer transfer window.
Here is all you need to know about the situation.
■■The background
Derby were initially charged by the EFL in January 2020 over alleged breaches of the profitability and sustainability rules.
The EFL said they had charged the Rams for recording losses in excess of the permitted £39m over a threeyear period and referred the matter to an independent disciplinary commission.
At the centre of the charge was the sale of Pride Park Stadium in June 2018 for around £80m to a company owned by chairman Mel Morris, with the club subsequently leasing it back. This enabled Derby to secure a pre-tax profit of £14.6m in their 2017-18 accounts.
Derby maintained they had done nothing wrong and, in August 2020, an independent disciplinary commission cleared the club of any wrongdoing.
The following month, the EFL announced it would appeal against the dismissal of a second charge over the club’s policy on “amortisation of intangible assets” – how the Rams measured the value of players over the length of a contract.
The appeal resulted in a £100,000 fine for Derby in June this year and the club was instructed to resubmit accounts for the 2015-16, 2016-17 and 2017-18 financial years.
■■The latest
Derby and the EFL remain in talks over settling their longrunning dispute.
It was reported by the Daily Mail on Wednesday that an agreement in principle has been reached between Derby and the EFL which would see the Rams docked nine points now, with three (12 in total) suspended.
However, nothing has been agreed, as things stand, and the two parties are still in dialogue.
The EFL issued a statement confirming no decision has been reached despite “media speculation”.
■■What the EFL is saying
The statement from the EFL read:
“In response to ongoing media speculation, the EFL wishes to clarify that discussions with Derby County in respect of outstanding Profitability
and Sustainability (P&S) matters are continuing and no decision has yet been reached.
“On 2 July 2021, an Independent Disciplinary Commission found in favour of the EFL in respect of its challenge to the club’s policy on amortising player registrations. The club received a £100,000 financial penalty, a reprimand as to its future behaviour and ordered to submit revised accounts for the years ended 30 June 2016, 2017 and 2018.
“In an attempt to resolve all remaining issues with the EFL in regard to its P&S submissions the club provided the EFL with information prior to last month’s deadline and this remains under review by the League’s executive.
“In any disciplinary matter, the EFL will always consider whether it can be concluded by way of an agreed decision as per EFL regulation 85. An agreed decision, which is subject to independent ratification, is deemed appropriate in circumstances which justify the conclusion of an effective and equitable resolution without a referral to a disciplinary commission.
“There are no timescales for this matter to be concluded and the League will not be providing any further comment at this time.”
The EFL issued a statement confirming no decision has been reached despite “media speculation”.
■■Why are Derby under a transfer embargo?
According to the Embargo Reporting Service on the EFL website, Derby are under an embargo for the following reasons:
Regulation 16.2: Failure to provide audited annual accounts.
Regulation 16.3: Annual accounts not filed with Companies House.
Regulation 17: Default in payments to HMRC.
Profit and Sustainability Rules: non-submission of audited accounts.
■■How does this affect signing players?
The embargo had allowed Derby to only bring in free agents on oneyear deals or shorter and players on half-season loans. All signings had to fall within a wage restriction, reportedly a maximum of £4,500 per week.
Derby brought in free agents Curtis Davies, Ravel Morrison, Richard Stearman and Ryan Allsop on oneyear deals and that filled their allowed quota of 23 players of “professional standing”.
They then received dispensation from the EFL to add Phil Jagielka and Sam Baldock on short-term deals until January to cover for longterm injuries to Krystian Bielik and Colin Kazim-Richards.
It means Derby are unable to add new signings to their squad unless the transfer embargo is relaxed or lifted or one of the 23 players of professional standing in the squad leave permanently or has his contract terminated. This would free up a space in the squad to bring in a free agent.
If the situation remains the same in January, Derby would not be able to sign any players when the winter window opens.
■■Can Derby still sign players outside the transfer window?
Yes, they can sign out-of-contract players but not currently unless the embargo is relaxed or lifted because they have reached the 23-man limit.
■■Can any of Derby’s scholars step up to the first team?
Yes. Scholars do not count toward the number of players of professional standing. Both Dylan Williams and Marko Borkovic featured in the Carabao Cup tie against Sheffield United at Bramall Lane last month and Williams made his full League debut in a goalless draw against West Bromwich Albion at The Hawthorns.
■■What is the club saying about the embargo?
Derby have been consistent in their stance of not commenting on what is an ongoing case. Both parties – the club and the EFL – cannot go public on the detail within the ongoing case.
■■What is Rams boss Wayne Rooney saying?
Asked last month if he was resigned to the possibility this could be the squad for the remainder of the season, Rooney said: “That’s what I have to think.
“I have to assume and prepare these players for the season. I have no indications that is going to be any different.
“That is where we at and if that is the case I’ll keep working with these players and trying to improve them and make them better players.
“Of course I’ll be trying to put pressure on every day to try and get more players in because I do think if we get one or two injuries it is a big, big issue and something we would really struggle to cope with.
“I also, on the other hand, have to try to protect these young players because some of the young players are with us because they have to be, not because they are at that stage of their careers yet.
“So I need to make sure I don’t throw them in at the deep end and almost end their careers before they have even started.”
■■What are the fans saying?
There is a mixture of disappointment, frustration and disillusionment among the fan base. Supporters want to hear from the club and see the issue sorted.
In letter recently sent to the club, the supporters’ group RamsTrust asked the club’s directors to “front up” and answer serious questions over the club’s financial situation in a bid to alleviate growing concern among the fans.
I have to assume and prepare these players for the season. I have no indications that is going to be any different. Wayne Rooney
■■Which other Championship clubs are currently under a transfer embargo?
According to the EFL’s website, Hull City and Reading are also currently under a transfer embargo.
Reading for a breach of profit and sustainability rules and Hull because of “conditions under monitored loan agreement”.