Man City FFP: PL rivals to demand £100m+ ‘compensation’ with guilty verdict amid ‘lawyer advice’
According to reports, rival Premier League clubs will demand ‘compensation’ if Manchester City are found guilty of breaching Financial Fair Play rules.
Man City are facing over 100 charges after being accused of breaching the Premier League’s FFP rules. They were referred to an independent commission following a four-year probe into their conduct between 2009 and 2018.
The Premier League side were charged at the start of 2023 and this case has already dragged on for longer than most would have liked.
City have insisted their innocence and have fought back against the Premier League. Earlier this year, they launched an unprecedented legal battle as they campaigned for the removal of Associated Party Transaction (APT) rules.
This separate case had the potential to dramatically alter the FFP hearing and it concluded at the start of October. It’s been reported that Man City did not achieve an overwhelming victory, but they are said to have “won on penalties” against the Premier League.
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While the APT hearing has already concluded, the FFP case remains ongoing and is expected to drag on until the start of 2025.
If Pep Guardiola‘s side are found guilty, they could be given a huge fine, transfer ban, points deduction or expulsion from the Premier League.
Man City’s Premier League rivals will be keeping a close eye on this situation and a report from The Times reveals they ‘can seek compensation’ if the Cityzens are ‘found guilty’.
Rival Premier League clubs are said to have ‘reserved the right to seek compensation’ after being ‘advised by lawyers’.
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The report explains.
‘A number of Premier League clubs have reserved the right to seek compensation against Manchester City over the club’s 115 alleged rule breaches before a deadline on Tuesday.
‘The action has been advised by lawyers even before the outcome of the case as there is a potential six-year statute of limitation period which dates back to November 5, 2018 when a German website first published the Football Leaks documents.
‘If the serious charges against City are found proven, clubs could claim for loss of income for missing out on the league title or European competitions over the course of several seasons, which could total hundreds of millions of pounds.
‘Clubs cannot sue each other through the courts under Premier League rules but they can do so through arbitration under Rule X.
‘Lawyers are understood to have advised clubs that if they waited until the outcome of the hearing into the 115 alleged rule breaches then there would be a risk any compensation claim could be deemed to be out of time.
‘The 1980 Limitation Act sets a six-year limitation period for legal claims for breaches of contract in the UK but allows an exception where that breach has been concealed.’