Arsenal, Liverpool, Manchester United and Tottenham Hotspur could claim damages from Manchester City after they were found guilty of 114 counts of breaching Premier League rules.
All four clubs formally retained the option to bring a claim against Manchester City back in 2024, when an independent commission hearing into 115 charges was in progress, in order to ensure they would not be time-barred.
The commission’s initial verdict on Manchester City’s guilt on all but one of the charges opens the door for compensation claims to be lodged now by teams who suffered a loss of revenue – via prize money – as a result of the alleged cheating.
Burnley were awarded £35m from Everton earlier this year, a result of arguing that the latter’s breach of spending rules denied them a fair chance of avoiding relegation.
“The bar for bringing such claims is arguably much lower now in light of Burnley’s successful recent claim against Everton, which itself is subject to appeal,” said Simon Leaf, co-founder of Three Points Law.
Leaf added: “It is also possible that the panel directs City to compensate others in the league, as well as potentially taking titles away. Nothing is off the table.”
Manchester United twice finished second to Manchester City during the period covered by the charges, 2009 to 2018. Arsenal, Liverpool and Tottenham could also claim they finished lower than they might have in various seasons.
Fred Snowball, a partner at Macfarlanes, said the prospects of any damages claims against Manchester City had been “much improved by Burnley’s successful claim against Everton”.
“Those claims would be enormously complex and, until very recently, largely unprecedented. Modelling the impact of Everton’s overspending in the Burnley case was very complex, and that concerned just a single season.
“Players at rival clubs could also bring claims for lost prize money, bonuses, and career opportunities. Those claims would be novel but not without foundation.”
Paul Stothard, partner at Norton Rose Fulbright, said the commission’s verdict would, if upheld pending an appeal, “open the floodgates to further legal challenges”.
“Manchester City being found liable for 114 out of 115 rule breaches means that other clubs may choose to pursue compensation for lost revenue, missed European qualification or relegation – though they would need to be able to prove how City’s breaches impacted on their own ability to compete and their quantifiable loss,” he said.
Sponsors such as Puma, Revolut and Asahi could also terminate their contracts with Manchester City if the charges are upheld, Leaf added.
“This is a damning indictment that goes to the very heart of the club and, assuming this is not overturned on appeal, will cause great damage to the club’s reputation and standing in the football world, which will have long-term consequences,” he said.
“Such consequences may extend beyond any sanction that the panel eventually impose – and could include the potential for sponsors to terminate contracts early under anti-embarrassment clauses that are commonly included in these types of deals.”