Premier League clubs have been watching on in anticipation as they wait to hear the result of Manchester City’s era-defining 115 charges case.
Man City were dealt the charges by the Premier League in February 2023 for allegedly breaching the financial fair play (FFP) rules over a nine-year period between 2009 and 2018.
They are alleged to have concealed payments through third parties by disguising them as sponsorship revenue.
An independent commission hearing started last September and ended in December, with the panel now considering its verdict.
Man City have shown signs of confidence the verdict will go in their favour, but little information has come to light throughout the process.
There have been suggestions the only winners will be both parties’ lawyers, with the legal bill expected to run into multiple millions of pounds.
That is likely to affect not just the Premier League and Man City, but the other 19 top-flight sides could also feel the pinch.
Everton
Premier League facing big legal fees after new Man City challenge
Man City’s case has been dubbed the ‘trial of the century’ in recent months, but it isn’t the only legal action the Premier League has been involved in over the past couple of years.
Everton and Nottingham Forest were both deducted points last season after they were found to have breached the profit and sustainability rules (PSR).
Despite being charged by the Premier League for exceeding the £105million spending limit over a three-year period in 2022-23, Leicester City avoided a points deduction after exploiting a loophole in the rules.
However, that case is still ongoing as the two parties remain in arbitration following the club’s breach.
The Premier League’s accounts for 2023-24 have revealed its administrative expenses, which include legal fees, increased from £123.7million in 2022-23 to £200.2million last season.
That figure is only likely to increase for 2024-25 following the Man City and Leicester cases, and that’s before you even start to think about the Premier League’s costs of defending its associated party transaction (APT) rules against Pep Guardiola’s side.
Following an independent hearing last June, the APT rules in force between 2021 and 2024 were deemed “void and unenforceable” by the tribunal overseeing the case.
The Premier League voted through amendments to the sponsorship rules last November that still stand, but they are also the subject of a legal challenge from Man City.
The cost of all these legal battles is set to add up, and it will be the top-flight clubs that suffer.
The Premier League doesn’t have independent sources of finance. It distributes the cash generated through sponsorships and broadcasting to the clubs.
That means its legal fees are likely coming out of the distribution pot, potentially leading to less money being handed out to teams next season and in the years to come.
Man City set for £38m hit after Premier League blow
Man City are set for a £38million hit in prize money themselves this season following their disappointing campaign.
The English champions raked in £152million after winning the Premier League for a fourth successive campaign and reaching the quarter-finals of the Champions League in 2023-24.
However, that figure is set to drop significantly this season following their top-flight struggles and early exit from the Champions League in the knockout round play-offs.
Guardiola’s side currently sit fourth in the Premier League table, but they are just two points above sixth-place Chelsea, who have a game in hand.
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