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Soccer-Derby face sanctions after EFL wins appeal over financial breaches

FILE PHOTO: Championship - Derby County v Nottingham Forest

(Reuters) - The English Football League (EFL) has won its appeal against a disciplinary commission clearing Championship (second-tier) club Derby County of financial misconduct, the EFL said on Tuesday.

British media reported that Derby could start next season with a significant points deduction or be relegated to League One due to potential sanctions related to the club's accounting policies.

The EFL charged Derby on two counts in January last year, the first relating to the sale of their Pride Park stadium and the second regarding the amortisation of players' registrations during their time at the club.

Both charges were dismissed by a disciplinary commission in August but an independent league arbitration panel said it was wrong to dismiss the second charge.

"More specifically, the panel determined that the Club's policy was not in accordance with accounting standard FRS102 because it failed to accurately reflect the manner in which the club takes the benefit of player registrations over the lifetime of a player's contract," the EFL said in a statement https://www.efl.com/news/2021/may/efl-statement-derby-county.

"The original Disciplinary Commission had already concluded that the club did not adequately disclose in its financial statements the nature and or effect of its change in accounting policy, and there has been no appeal against that decision."

Derby said in a statement https://www.dcfc.co.uk/news/2021/05/club-statement-efl-v-derby-county they "accept, but are disappointed" with the panel's decision.

The original disciplinary commission will now decide on what punishment should be imposed on Derby.

The EFL said it will press for a decision "as soon as reasonably possible".

Derby, managed by former England striker Wayne Rooney, secured a 3-3 draw with Sheffield Wednesday on Saturday to narrowly avoid relegation from the second division.

(Reporting by Hardik Vyas in Bengaluru, editing by Ed Osmond)