Manchester City charges: Premier League clubs seek legal advice over possible compensation
Premier League clubs have sought legal advice as to whether they would have a compensation claim over the Manchester City 115 charges case.
After a long wait for the outcome, City have been found guilty of a majority of the financial rule breaches they were accused of.
BBC Sport has also been told that the club will appeal.
It has emerged that a number of Premier League sides, prior to Friday’s news, had already started seeking advice over whether they would have a case for financial compensation as a result of City’s breaches.
It also emerged that:
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Other Premier League clubs have been formally told about the independent panel’s decision. A select group of club directors were informed by email and had to sign a non-disclosure agreement before they could read the document, a source told the BBC
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While it is not known when the outcome will be officially communicated to the public by the Premier League, it is understood the punishment decided by the panel will be released before any appeal is completed
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Manchester City deny wrongdoing but being found guilty on the most serious charges means they could be looking at a points deduction serious enough to relegate them, large fines or even expulsion from the Premier League
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An appeal process could mean the uncertainty surrounding the case continues to cloud the top flight
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A sanctions hearing could still be months away. Once that is ruled on by the panel, the result may not be published until City’s appeal is completed – which could also take a long time to complete
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It is understood a number of City players do not have relegation release clauses in their contracts in the event of the club losing their Premier League status as a result of any sanctions
The news that City had been found guilty was broken by the Athletic, which reported that 114 of the 115 counts were upheld.
It came 1,327 days after City were charged by the Premier League in February 2023 following a four-year investigation, and 22 months since a hearing by an independent commission concluded.
No official announcement has been made by the Premier League, which has declined to comment.
BBC Sport has been told the independent panel has ruled, and the majority of the charges have been upheld.
Manchester City released a statement saying: “Premier League process remains ongoing with significant elements to be completed, and subject to strict confidentiality.
“The club has diligently respected due process for eight years on the basis that the Premier League board and executive would behave as an independent, impartial and fair-minded regulator, free from partisan influence.”
One source, who held a senior executive position at one Premier League club before moving to another, said they expected clubs to submit individual compensation claims against Manchester City.
However, another leading lawyer told the BBC that process could be centralised by the league.
In June, Everton were told they must pay Burnley £35m after they broke profit and sustainability regulations (PSR) over a three-year period.
Burnley argued the breach impacted their chances of staying in the Premier League, and sought compensation for the losses associated with being relegated.
Everton have appealed, with sources saying they will “robustly and thoroughly” contest the ruling, but it provides an interesting backdrop to the Manchester City case.
BBC Sport has also been told that, in the event of being found guilty, City will appeal against the findings.
