Derby County: EFL says no decision has been made on points deduction

Derby County are still waiting to see if they have breached spending rules between 2016 and 2018

The English Football League says no decision has been made on any potential points deduction for Derby County over their accounting policies.

Media speculation had suggested the Championship side would be docked nine points, with three more suspended, leaving them bottom of the table.

Their accounts for 2016, 2017 and 2018 are being re-examined after they were found to have broken accounting rules.

The Rams were fined £100,000 and reprimanded in July for that breach.

Under the EFL's profit and sustainability rules Derby can make losses of no more than £39m over three seasons.

But having had the way they account for players - known as amortisation - judged to breach the EFL's rules, the club's accounts have been re-examined by the league to see if they did go over the £39m loss level.

Amortisation rules should see the cost of any transfer fee accounted for evenly over the length of that player's contract - so a £5m fee over a five-year deal would be charged as £1m per year, and worth zero come the end of the contract period.

However, Derby gave players a 'residual value' - meaning the club could increase the value of players during the life of the contract - a practice which it is claimed is not in line with generally accepted accounting principles.

"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," an EFL statement read.

"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."

In March 2019 Birmingham City were docked nine points for breaching profit and sustainability rules, and Sheffield Wednesday saw a 12-point deduction reduced to six points on appeal last season.

Had the Owls not been deducted points Derby, who in consequence finished three points above the Yorkshire club, would have been relegated from the Championship.

Derby had a second charge related to the sale price of Pride Park to owner Mel Morris dismissed by an independent disciplinary commission.

The charges related to the valuation of Pride Park when it was sold to Morris for £80m, despite it previously being listed as worth £41m.

Uncertainty continues at Pride Park

Derby owner Morris is still trying to sell the club, having had two prospective sales fall through.

In March Derventio Holdings, who were backed by the Abu Dhabi-based Bin Zayed Group, saw their takeover bid end while another from Spanish businessman Erik Alonso was called off in May.

The club has been under a transfer embargo since before the summer window opened, meaning the Rams have only been allowed to sign free agents with strict conditions on salaries.

On the field, the Rams have won just one of their seven league matches this season and drawn four, leaving them two points above the relegation zone.

Should they suffer a nine-point deduction they would slip to minus-two points and be behind fierce rivals Nottingham Forest, who currently prop up the table.