Premier League clubs seek advice on Manchester City compensation claims

Premier League clubs are seeking legal advice about possible compensation claims against Manchester City over the club’s financial charges, according to separate reports by BBC Sport and ESPN. The prospect matters to clubs that believe they lost revenue during the seasons covered by the case. Whether any club receives money will depend on unresolved proceedings and its ability to establish a loss caused by a proved breach.

The Premier League has not publicly announced the independent panel’s decision or a sanction. BBC Sport reported that the panel had upheld most of the charges, while ESPN said its sources expected guilty findings on most counts. City have denied wrongdoing, and the club said the process remained ongoing, with significant elements still to be completed under confidentiality.

Which clubs are involved?

The Independent identified Arsenal, Manchester United, Liverpool and Tottenham as clubs that had preserved rights to claim compensation for lost earnings under Section W of the Premier League rules. It reported that the notices were intended to protect their ability to bring claims before a limitation period expired. The newspaper contacted all four clubs; United and Tottenham declined to comment.

That report also said other clubs had spoken with law firms, although it described the position of clubs that had not preserved their rights as a grey area. BBC Sport and ESPN reported that a number of clubs were seeking advice, without naming every club currently doing so. Preserving a possible claim does not establish that a club has filed one or will recover money.

Why the underlying case matters

The Premier League charged City in February 2023 after an investigation into alleged breaches of its financial rules. According to BBC Sport, the allegations include failures involving financial information, details of player and manager payments, compliance with football financial rules and cooperation with the league’s investigation. Several categories concern conduct from 2009 to 2018; the cooperation allegations extend into 2023. A fuller account of the proceedings appears in NewsJaws’ Manchester City charges explainer.

BBC Sport reported that a sanctions hearing would still be needed and could take months. It said City would appeal; ESPN also reported that sources at the club expected an immediate appeal to any guilty verdict. The Independent reported that legal action seeking compensation would follow only after the underlying case and appeals were complete. The timing and final findings therefore remain consequential for any proposed claim.

City’s statement, quoted by BBC Sport and ESPN, said: ‘The Premier League process remains ongoing with significant elements to be completed, and subject to strict confidentiality.’ The club also said it had respected due process and expected the league to act as an independent and impartial regulator. The Premier League declined to comment when approached by both outlets.

What would a compensation claim have to show?

The Premier League independent commission’s published ruling in Burnley’s compensation case against Everton explains the relevant hurdle. It treated a Rule W compensation claim as a contractual claim rather than another sporting sanction, applied conventional principles of causation and limited recovery to loss caused by breaches found proved. A club pursuing City would need to connect an established breach to its own identifiable loss; the existence of a financial rules case alone would not calculate damages.

The Burnley case shows why that connection can be contested. Burnley argued that Everton’s breach of profitability and sustainability rules affected the 2021–22 relegation outcome and caused financial loss. Burnley finished 18th, four points behind Everton. The commission examined competing expert analyses about what would have happened without the breach, while Everton disputed both causation and the amount claimed.

Sky Sports reported in June that the commission ordered Everton to pay £26m plus £9.1m in interest, against the £51.7m Burnley had sought. Everton appealed, calling the ruling flawed in law and fact. Burnley chairman Alan Pace said the club had accepted relegation on the pitch but objected to competing in a league it said was compromised by Everton’s breach. The appeal means the order’s ultimate outcome is unsettled.

What remains unresolved

No publicly announced City ruling or sanction in the consulted reports establishes the final set of breaches on which another club could base a claim. Nor do the reports establish which clubs will bring claims, whether every potential claimant preserved its rights in time, or how much any particular club could prove it lost. Those questions will shape whether legal advice becomes litigation and whether any compensation is awarded.