MusaRival Premier League clubs are reportedly lining up to explore legal action against Manchester City, with the possibility of several teams joining forces in a collective claim for damages.
Arsenal, Manchester United, Liverpool and Tottenham have already reserved their right to pursue legal action, with legal notices reportedly issued before the relevant limitation periods expired.
The 40-page legal document published by the Premier League has highlighted the scale of the allegations against City and could potentially pave the way for further claims from clubs that believe they suffered financial losses.
Manchester City were accused of using “sham” contracts, inflating deals worth around £900 million and engaging in what was described as “widespread” deception. The nature of the allegations, including claims involving fraud, could potentially give rival clubs greater scope to pursue historic claims.
One area of potential litigation concerns clubs that may have missed out on Champions League or other European qualification because of City’s alleged breaches. Relegated clubs could also argue that they might have avoided relegation if the Premier League had acted differently, while other teams could seek compensation over lost commercial opportunities.
Sports barrister Yasin Patel of Church Court Chambers explained that more clubs could potentially join the legal battle.
“Four teams have stated they will take legal action but other teams are likely to follow suit,” Patel said.
He pointed to Norwich City and Hull City, who finished 18th in the 2013-14 and 2014-15 Premier League seasons respectively, as examples of clubs that could potentially argue they might have remained in the division had action been taken against Manchester City at the time.
However, Patel acknowledged that proving such a claim would be complicated.
“The clubs would have to prove that Man City’s alleged actions caused them to ultimately suffer losses due to relegation and the financial implications that followed,” he explained.
He also suggested that relegated clubs could potentially pursue claims collectively rather than individually.
The Premier League itself could also become a target of legal action if clubs argue that investigations and disciplinary proceedings should have been completed more quickly.
Patel added that clubs who missed out on European football could also explore compensation claims, particularly where Manchester City’s position allegedly affected the distribution of European places.
Wigan Athletic and Watford, who missed out on European opportunities in the 2010-11 and 2018-19 periods, were cited as possible examples of clubs that could examine whether they have grounds for compensation.
There have been suggestions that Arsenal, Manchester United, Liverpool and Tottenham could each potentially seek around £200 million in damages relating to lost opportunities, commercial income and Champions League qualification.
However, the eventual figure remains impossible to determine because the number of potential claimants and the exact legal basis of any claims are still uncertain.
Patel noted that any damages could ultimately run into “vast sums”, particularly if numerous clubs decide to pursue compensation.
He also referenced the case involving Everton and Burnley, where Everton were ordered to pay Burnley £35 million in damages following a dispute connected to Everton’s Profit and Sustainability Rules breach.
“The appeal is due to be heard in January. But that involves just one club,” Patel said.
“If we have 10 to 15 clubs seeking compensation, Manchester City could be looking at paying vast sums to other clubs in addition to all the legal costs that could follow.”
For now, any potential claims would still need to establish a clear link between Manchester City’s alleged rule breaches and the financial losses suffered by individual clubs. The scale of any future legal action will therefore depend on which clubs decide to proceed and whether they can successfully demonstrate those losses.
Musa
