Arsenal, Manchester United, Liverpool and Tottenham have reserved their rights to pursue claims, according to the Daily Mirror, after the Premier League published the independent commission’s 40-page core decision. The ruling found City guilty of serious financial breaches covering the period from 2009/10 to 2017/18, although the club continues to deny wrongdoing and is appealing.
The commission found that City had used sham commercial arrangements and misstated accounts, with the Premier League saying the practices artificially inflated revenue and reduced costs by more than £900m.
That has opened a possible route for clubs to argue that they suffered financially as a consequence.
Sports barrister Yasin Patel told the Mirror that clubs which missed out on European qualification could potentially examine claims, while relegated sides could also argue that City’s conduct affected their survival.
Norwich City and Hull City, who finished 18th in 2013/14 and 2014/15 respectively, were cited as examples of clubs that could theoretically make such an argument. Patel stressed that proving a direct financial loss would be difficult.
“It would probably be easier for teams who were relegated to make this argument collectively rather than individually,” Patel said.
The same question could arise for clubs that finished outside European places during seasons in which City occupied a qualifying position. Patel pointed to Wigan Athletic and Watford as examples from 2010/11 and 2018/19.
Potential losses could extend beyond prize money. A successful claim might seek to account for lost Champions League revenue, commercial opportunities and other financial benefits associated with higher league positions.
The sums being discussed are potentially substantial. The Mirror reported that Arsenal, United, Liverpool and Tottenham could each have claims worth around £200m, although the eventual value of any action would depend on the losses a club could prove and the number of claims brought.
Patel also raised the possibility of clubs pursuing the Premier League itself if they argued that the league had failed to act quickly enough.
“Damages are hard to predict as we do not know many clubs will seek compensation, nor whether they will seek it solely from Manchester City or potentially from the Premier League as well, allegedly failing to properly discharge its duties,” he said.
The potential scale has been illustrated by the separate case involving Everton and Burnley, although that dispute concerns a single club and a different set of circumstances.
“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,” Patel added.
Any such claims would be separate from the Premier League’s disciplinary process and City’s appeal. With sanctions against the club still to be determined, the financial fallout could therefore extend well beyond whatever punishment eventually emerges from the league case.
