From the BBC Sports website:
Middlesbrough are set to sue the English Football League for allegedly failing to uphold their financial rules with regards to the Derby County owner's purchase of Pride Park.
Boro - who missed out on a Championship play-off place by finishing one point behind Derby last season - have sent a legal letter to the EFL, whose board met on Thursday.
The EFL are set to conduct independent valuations regarding sales by Derby, Sheffield Wednesday and Reading of their own grounds to their owners.
Both Middlesbrough and the EFL have declined to comment on the issue, first reported by The Times.
In May, the issue was raised by Leeds United owner Andrea Radrizzani, who accused Derby of "cheating" after owner Mel Morris bought Pride Park for £80m and leased it back to the club, helping the Rams achieve a profit of £14.6m.
The ground had previously been listed on the club's books as an asset worth £41m.
Earlier this summer, it was reported some Premier League clubs wanted the apparent loophole closed.
Derby have defended the sale of their stadium, saying they conducted an independent commercial valuation prior to the deal being completed.
Aston Villa's sale of Villa Park to the club's owners is also set to be scrutinised by the Premier League, to establish whether it may have breached financial fair play rules.
The stadium was sold in May for £56.7m to owners Nassef Sawiris and Wes Edens via NSWE Stadium Ltd, a company controlled by the two billionaires.
The deal helped Villa comply with the EFL's profit and sustainability rules.
Villa, promoted to the top flight in May, insist any such review is standard practice, and part of the normal assessments that all clubs face.
Middlesbrough sue the EFL
posted on 14/9/19
You need to understand the difference between market value and book value.
Just because the book value was £41mill doesn't mean that the market valuation is incorrect.
I think it has been over valued for the purpose of avoiding PnS sanctions, but the EFL/Middlesborough will likely have to prove that the market value of the stadium couldn't possibly have been £80mill. Derby will have their surveyor arguing it is worth that, and the other side will have a surveyor arguing it couldn't be.
posted on 14/9/19
Was the book value at historical cost or fair market value?
posted on 14/9/19
Gibson is jealous because although his stadium is almost identical in design & size to ours, he chose to build it in a 5hit-hole called Middlesborough.
posted on 14/9/19
comment by Scouse (U9675)
posted 1 hour, 31 minutes ago
Gibson is jealous because although his stadium is almost identical in design & size to ours, he chose to build it in a 5hit-hole called Middlesborough.
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Or he doesn't believe in using financial shenanigans.
In terms of 5hit-holes, I'd say Derby and 'Boro are pretty much on a par.
posted on 14/9/19
And these people at Derby had the nerve to throw the cheating accusations out just for watching them train. And whilst they will say they didn't break any rules or law, neither did Leeds, but the EFL found a way around that one. Makes you wonder how they will deal with it, doesn't it ?.
posted on 14/9/19
A reason I wrote if they were found to be guilty that 200k would be a kick in the face for us!..
Meaning the 200k what Shaun says isn't enough!..
This must be more serious unless the authorities can make another new rule to safeguard their already flawed rules!..
Leeds should have challenged that 200k, time the people in charge did that fit and proper thing on themselves before bringing more shame on the game, they seem to breath and make a bigger mess than a curried toilet!..
posted on 15/9/19
Surely not treating the game with good faith, or whatever we were done for.
posted on 24/9/19
According to The Times, the English Football League has reportedly asked the Owls to explain why a £38 million profit for the sale of Hillsborough was detailed in their 2018 accounts when Land Registry documents date the purchase to almost 12 months later.
https://www.yorkshirepost.co.uk/sport/football/sheffield-wednesday/efl-ask-sheffield-wednesday-to-explain-hillsborough-sale-claim-reports-1-10014482
posted on 14/11/19
EFL Statement: Sheffield Wednesday charged with breach of financial rules
1 Hour ago
Following a formal investigation into financial information provided by Sheffield Wednesday in relation to the Club’s 2017/18 Profitability and Sustainability (P&S) submission, the EFL has today issued a number of charges relating to alleged breaches of EFL Rules.
Earlier this year the EFL launched an investigation into the Club’s financial submission for the period ending July 2018 under the relevant P&S Rules following the completion of the sale of Hillsborough Stadium.
The EFL has reviewed a large number of documents obtained from the Club as part of this process and concluded there is sufficient evidence to justify issuing charges of Misconduct. The charges are in respect of a number of allegations regarding the process of how and when the stadium was sold and the inclusion of the profits in the 2017/18 accounts.
All charges will be considered by an independent Disciplinary Commission and, if the charges are proven, the Commission can impose any of the sanctions set out in EFL Regulation 92.2.
The EFL Board has previously agreed and communicated with all Championship Clubs a set of sanctioning guidelines, but the Commission, under EFL Regulations, has the ability to invoke a full range of sanctions should the breach be confirmed.
The EFL continues to review the Club’s 2018/19 P&S submissions.
As these matters are now subject to proceedings, the EFL will be making no further comment at this time.
https://www.efl.com/news/2019/november/efl-statement-sheffield-wednesday-charged/?utm_source=t.co&utm_medium=referral
posted on 14/11/19
It very timely is it?