Steve Gibson

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Derby sued by Middlesbrough over alleged financial transgressions

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Middlesbrough has opened legal proceedings against playoff finalists Derby County over what they allege to be a breach in the Football League’s financial rules.

Boro owner Steve Gibson is taking action over what he believes to be Derby County’s intentional circumvention of financial sustainability regulations by posting an $18.6 million profit last season despite Derby owner Mel Morris selling the club’s ground Pride Park and then leasing it back.

Derby, however, has maintained its innocence, with the club even providing a written offer to all other clubs to review their books, an offer which Derby alleges Middlesbrough declined to take advantage of. “Middlesbrough were offered by us in writing to come with their advisors to go through our submissions for profitability and sustainability, [but] they declined.”

Gibson also attempted to force Derby to submit their financials to an independent inquiry, but all other Championship clubs voted it down. The Middlesbrough owner went after Aston Villa in late April, with Tony Pulis confirming the owner is “not happy” over “rules being broken.” Gibson attempted the same maneuver, hoping to force Villa to submit to an independent financial inquiry, but the other Championship clubs also turned that motion down.

Reports of Morris’s financial troubles with the club came to a head around that time in March when a report suggested Morris wanted out of the club, looking for a buyer after suffering losses of nearly $3.8 million per month as Derby owner. At that point Derby sat seventh in the Championship table and fell to ninth by the end of the month. Now, having recovered to earn a playoff position at the death, they now sit in the playoff final, set to play Aston Villa on Sunday for a spot in the Premier League.