Man City and the Premier League face ‘legal warfare’ over the imminent verdict of the Citizens’ financial fair play case, according to reports.
An independent commission hearing to examine 115 charges laid by the Premier League against Man City started in September and ended in December.
The Premier League opened an investigation into Man City way back in 2018 and after a number of legal delays, charges were finally laid in February 2023 and the club were referred to an independent commission.
The charges against the Citizens relate to the requirement to accurately report financial information, including around the value of sponsorship deals, the submission of details of manager and player pay information and to a club’s responsibility as a Premier League member to adhere to UEFA’s financial regulations and to the league’s own profitability and sustainability rules (PSR).
They are also accused of failing to co-operate with the league’s investigation. In all, there are charges relating to every season between 2009-10 and 2022-23.
A verdict is expected soon with The i Paper claiming that the verdict ‘could significantly change the race for the top five and even the relegation battle’.
There have been rumours that if Man City are found guilty of the most serious charges then they could be deducted enough points to relegate them this season.
The report continues by saying that the verdict could spark ‘legal warfare’ in which Man City face a number of claims from multiple clubs for compensation for various reasons.
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The i Paper adds:
‘Experts say the Premier League finds itself in a “crazy situation” and have told The i Paper there’s a feeling that the league could become “incredibly litigious” in the coming months, with legal bills easily hitting nine figures, if the Manchester City case is proven.
‘Carlos Hurtado, a sports lawyer with Baker McKenzie, believes the threat to City of multiple compensation claims is “real and serious” and says all eyes will be on a parallel compensation case brought by Burnley against Everton. Burnley are arguing they are entitled to compensation for revenue lost after being relegated at Everton’s expense in a period the Toffees were found to have breached Premier League Profit and Sustainability Rules (PSR). While it may sound as if they have a “compelling case” it is “hard to prove”, admits Hurtado.’
Burnley’s attempts to claim compensation from Everton after their relegation last season could be telling, the report continues:
‘Perhaps more relevant, though, is Burnley’s upcoming compensation case against Everton over their PSR breach. The Clarets’ case – which is due to be heard by an independent commission featuring a three-person panel this summer – is that the delay in applying a points deduction despite breaches that covered the season when they were both fighting relegation had an impact on who stayed up. It is a case being watched eagerly by clubs in the Premier League.’
Speaking to the newspaper, Hurtado said: “It is possible that the Burnley and Everton case could serve as a precedent for clubs which seek to take action against Manchester City should they be found guilty of the multiple charges against them as teams that believe they were at a disadvantage as a result of Manchester City’s alleged charges may seek compensation.
“Just like relegation, failing to qualify for European competitions and a league standing can impact club revenues and all the potential claims in Manchester City’s case should they be found guilty of the alleged charges would be based on the same concept – a loss of revenue and opportunities due to breaches of sustainability rules.”
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