The EFL can today publish the written reasons relating to the Independent Disciplinary Commission’s sanction verdict in respect of the recent proceedings between the EFL and Derby County.

Following the decision, the EFL remains disappointed that the Commission has determined that a £100,000 financial penalty is appropriate, when it was found the policy adopted for the amortisation of player registrations and the description in the notes to the Annual Accounts did not comply with Profit & Sustainability (P&S) rules.

Alongside a financial penalty, the Club received a reprimand as to its future conduct and has been ordered to submit revised and restated accounts for the years ended 30 June 2016, 30 June 2017 and 30 June 2018 to the EFL by Wednesday 18 August 2021.

While the EFL does not agree that those sanctions are commensurate to the breaches found, following consultation with our legal advisors, the EFL Board has regrettably determined that there are insufficient grounds to appeal the sanction imposed by the Independent Disciplinary Commission.

As a result of the League’s successful appeal, the Club’s re-stated accounts and revised calculations are to be prepared using a compliant form of amortisation in accordance with accounting standard FRS102 and the requirement of the P&S Rules.

Once these have been submitted, the EFL will then be required to consider the submissions in reference to the P&S rules and in particular re-assess whether the Club has complied with the requirement to limit losses in accordance with those rules.

The P&S rules have been adopted by both Premier League and Championship Clubs as a means of assisting them in regulating their own financial performance. Having done so it is incumbent on the EFL to uphold those rules and, as previously demonstrated, it will apply the full force of the current regulations as appropriate.

As a consequence of the EFL’s decision not to appeal, the divisional placings for season 2021/22 are to remain in accordance with the fixture list issued on 24 June 2021.

The written reasons can be found here: https://www.efl.com/-more/governance/judgments/judgments-202021/.