It has been revealed this week that Everton must pay £40m to Burnley after The Toffees lost a legal battle over PSR issues. Following this financial punishment of one Premier League club, the potential outcome of Manchester City's 115 charges case has also come into focus.
The Etihad outfit are alleged to have violated financial regulations and could face severe punishment. While point deductions, fines and transfer bans have been discussed, there will also be a key focus on what action rival Premier League sides will take if Man City are found guilty.
In the recent case between Everton and Burnley, the Clarets argued that if the points deduction had happened in 2022 – the year they were relegated – Everton would have gone down instead. This would have obviously had a major impact on the two clubs' finances, hence why further retrospective punishment was taken this week, with the Toffees told to pay out £40m.
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Everton Punishment Could Set Legal Precedent
Manchester City corner flag
The Everton punishment news was broken by The Lawyer. That same outlet has also revealed how this could be a sign of things to come with regard to the Man City case. A report notes:
"The Premier League’s rules allow for clubs to seek compensation from other clubs for rule breaches that cause them loss." While adding: "Damages in these cases are typically calculated by taking into account the value of the lost opportunity and the likelihood of success."
As such, some Premier League clubs may well aim to seek compensation from Manchester City if they are found guilty of any breaches. The article said 'Manchester City and its rivals will be closely following the appeal and any legal precedent it sets' before then explaining what those teams are planning to do, should the opportunity arise:
"Several Premier League clubs are understood to have lined up legal counsel to sue City for compensation, should it be found to have breached League rules in the 115 charges case brought against it."
How Premier League Clubs Could Sue Man City For Millions
Manchester United co-owner Sir Jim Ratcliffe
As an example of how one Premier League side could look to sue Man City for compensation, SheWore have written up a hypothetical for what some teams could be owed. The article notes that 'based on the Burnley judgement, both Arsenal and Manchester United could make the case that they suffered a loss of earnings due to Man City finishing ahead of them.'
As Premier League teams get 'prize money' depending on where they finish, certain clubs could well argue that they have missed out on millions due to Man City's alleged crimes. For example, SheWore point out that Man City finished fourth in 2015/16, level on points with Manchester United but above them on goal difference. As such, they qualified for the Champions League ahead of their rivals, earning £50m from being in the competition the next year.
As the 115 charges relate largely to a range of alleged financial rule breaches between 2009 and 2018, should they be found guilty, there could be a huge number of cases made against Man City with regard to retrospective compensation. It remains unclear when a verdict will be reached, but certain insiders expect it to be soon.
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