Several Premier League clubs are gearing up for potential legal action against Manchester City following an independent commission's damning verdict, which ruled the Manchester club guilty of 114 out of 115 charges related to financial misconduct.
According to The Athletic, a number of clubs have been consulting with leading law firms for some time. Some legal teams have even reached out to clubs, suggesting that they may be entitled to compensation if City's violations are ultimately confirmed.
Clubs may seek compensation
With the verdict now in, discussions about potential claims have intensified. Several clubs might argue that City’s actions deprived them of Champions League places and the associated income. Additional claims could involve lost sponsorship bonuses and other financial repercussions.
The Athletic reports that it’s possible some clubs could band together to file a collective lawsuit against Manchester City.
Precedent from Everton and Burnley
The possible claims draw parallels with the recent decision involving Everton, where an independent commission ruled that Everton must pay Burnley £35.1 million after it found that breaking profitability and sustainability rules in the 2021/22 season gave the club an unfair sporting advantage.
This case may now serve as a crucial precedent for other clubs contemplating compensation from City.
Next steps — the appeal
However, any potential legal claims may not progress to full-blown legal proceedings until Manchester City's appeal process is concluded. The club is expected to challenge the findings regarding the 114 breaches.
A spokesperson for Manchester City commented to The Athletic:
“The Premier League process is ongoing, significant stages remain to be completed, and the entire procedure is conducted under strict confidentiality. Therefore, Manchester City’s position remains the same as outlined in the club’s statement from February 2023.”
The club further emphasised that they have adhered to established procedures over the last eight years and are counting on an independent and impartial regulatory outcome from the Premier League.
Implications of the verdict
Initially, Manchester City faced the charges in February 2023 after an investigation into alleged breaches of Premier League rules covering the period from 2009 to 2018.
Now, the commission has found the club guilty on 114 of 115 counts. However, this does not automatically strip them of titles, impose point deductions, or exclude them from the Premier League — final sanctions are yet to be determined.
Meanwhile, clubs within the league are already assessing the potential financial implications and legal grounds for their own claims.