A look at the millions that would be owed to Manchester City if they are cleared of the main charges levelled at them by the Premier League
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A banner depicting Manchester City solicitor Lord David Pannick KC is seen ahead of the Premier League match between Manchester City and Aston Villa at Etihad Stadium on February 12, 2023 in Manchester, England.
A banner depicting Manchester City solicitor Lord David Pannick KC is seen ahead of the Premier League match between Manchester City and Aston Villa at Etihad Stadium on February 12, 2023 in Manchester, England.
(Image: Photo by James Gill - Danehouse/Getty Images))
Manchester City could be set to win back millions from the Premier League if the 115 verdict lands in their favour. However, they are unlikely to be able to counter-sue or take on other parties even with a victory.
Much has been said about the potential penalties for City should they be found to have committed the most serious allegations they have been accused of by the Premier League in a case that has been open for more than two years. A three-man panel heard evidence from both sides in late-2024 and their decision is expected soon.
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Talk of relegation or expulsion from the league or an enormous points deduction all capture imaginations, and will be wanted by fans of most clubs who have suffered at the hands of City over the past decade.
However, with the club insisting on their innocence from the start and having cleared their name at the Court of Arbitration for Sport when UEFA brought similar claims in 2020, there should also be acknowledgement of what comes next if the Blues are victorious again.
The most likely boost from a verdict predominantly in City's favour will be recovering most of the costs of their representation for the hearing. It has been well-publicised how much Lord David Pannick KC, leading the defence since the charges were announced, can cost for his clients.
That bill, and the rest, may end up sitting with the Premier League - even if they are successful in proving City failed to co-operate with their investigation. Whichever side is judged to have lost more than they won is facing a hefty financial cost as a consequence.
“Whilst we know from the published Everton costs hearing that there is no restriction on the Independent Commission in terms of costs, it is likely to be asked to, and will, treat the proceedings akin to High Court commercial litigation," football finance expert Stefan Borson told the Manchester Evening News. "In doing so, the general rule is that it is fair for the unsuccessful party to pay the successful party’s costs. This is especially so where a party fails to prove serious allegations of fraud where courts generally award the highest percentage of recovery (known as indemnity costs). Likewise, a finding of fraud against City is likely to give rise to the Premier League getting the vast majority of its costs from City."The complexity can arise where, as in City’s case, there is a range of allegations and where the decision may not be binary. In those cases, the courts (and therefore the IC) will look, as a matter of substance and reality, who has 'won.'
"Then it considers whether, despite one party having won in the significant sense, there are any matters which the other party has succeeded on which took a significant amount of additional time and resource to contest. This might include the co-operation charges."From there it is for the party claiming costs to show that it’s costs claimed are reasonable and proportionate except if one side is awarded the indemnity costs as could be possible in this case."In summary, if City were to successfully defend all the substantive allegations regardless of the cooperation outcome, they could expect to recover 80-90% of their costs.”
The Premier League wrote to clubs in September warning that they had spent £45m on various legal bills for the 2023/24 season, with The Times reporting the figure had expected to be more in line with £8m.
Since then on top of the 115 hearing they have been defeated by City over Associated Party Transaction rules that were found to be unlawful, and will have to pay the majority of costs for those legal representations.
Premier League CEO Richard Masters
Premier League CEO Richard Masters(Image: Financial Times)
Any further financial hits would go down badly for the league and also for its members, whose money received from the central pot of money will be decreased with every bit that has to be spent on City's legal fees.
However, while many Blues will be out to seek damage for a perceived loss of reputation if they do clear their name, the club are almost certain not to receive money for that.
“Despite the immense frustration which will accompany a successful verdict, City are unlikely to be able to mount any case for compensation against the Premier League or other clubs," said Borson. "Only a finding by the Independent Commission suggesting that the case was brought in bad faith (which simply is not going to happen) would give rise to potential for a claim for damages beyond costs.
"Even a hint that the case had elements of vexatiousness would not assist City on this. In short, costs recovery will be the best City can do.”