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He didn't lend DCFC the money to buy the ground, it was bought in the holding company Clowes Development UK. Sure it wasn't worth 80m but I understand that he paid £1 plus cleared the debt of 24m due to MSD (Dell)
27 years ago it cost more than that to build (£28m) so I'd say it might be "worth" 50m in today's money, but I'm no surveyor!
Anyway 24m for the ground/site seems likely "cheap" compared to original cost or whatever subsequent value you put on it.
I'm still confused by your "offsetary" comment. What has he offset against the loan?Quote:
Originally Posted by Geoff Parkstone
A book gain on revaluation of the ground in CDUK from 24m to whatever...
Now that makes sense. Ta.
Its difficult to say I think on value. Brentford new stadium cost 70 plus million and it's nowhere near the capacity of PP. So if you think on that basis what would it cost today to build then it would probably be significantly more. Everton stadium will be about 52k capacity but cost 500 million. So on that basis 80 million doesn't seem to unrealistic.Quote:
Originally Posted by Geoff Parkstone
Of course the EFL didn't think so and used the cost/value of morecambes 6k capacity stadium as a benchmark.
Ah but the EFL failed with their challenge on the ground valuation and "won" their case on the amortisation of player values. The whole FFP is a shambles, some form of control is required to try and prevent what hapened to Derby nd other clubs, but FFP doesn't do this.Quote:
Originally Posted by SithHappens
Indeed, that charge was an after thought, probably as they knew they wouldn't win on the stadium.Quote:
Originally Posted by swaledale
Interesting that the initial panel compromising of 3 accountants ruled the practice legal. No accountants on the appeal panel.
Indeed the whole issue was bizarre and whilst ultimately it was Mel Morris who was responsible for throwing cash at trying to get Derby promoted and was also contemptuous of the EFL. The way the EFL applied sanctions didn't stop the implosion of the club financially.Quote:
Originally Posted by SithHappens
One casts ones mind back to QPR beating Derby in the play off final, who had clearly breached FFP rules and yet managed when relegated from the prem to agree a financial penalty only - in the region of £40 million, when really they should ahve had a pts deduction if not demotion to league 2.
The rules were probably different, it would have been around that time Forest breached FFP two seasons on the trot but just got a transfer embargo.Quote:
Originally Posted by swaledale
The QPR one dragged on, I recall the EFL wanted to give a higher fine but QPR just kept pushing back. We rolled over really. Possibly due to Mel losing the will plus we know he was quite I'll too.
The appeal system though is strange. If Forest get a points deduction they will appeal, as did Everton as did Sheffield Weds. But we weren't allowed because the ruling was off the back of an appeal. So us being found not guilty initially had a huge detriment overall.
I can understand that appeals cant just go backwards and forwards but to deny a club the right to have one appeal seems harsh.
Agree Mel rolled too many dices, and had we got away with it it was probably a matter of time anyway. And I don't think I'll ever accept the need for him to put us into administration. That was the killer really. The 9 points only and wed have stayed up probably.
I think by then he was looking to stop losing more money and administration was the only way to do that. The accounts show what it costs to run Derby. I've seen estimates that owning Derby and going into admin cost him in the region of £240 million a classic case of how owning a football club will make you a small fortune....as against the big one you had before you bought it!!Quote:
Originally Posted by SithHappens