Clubs seek legal advice over Man City charges compensation
· Yahoo Sports
Premier League clubs are seeking legal advice about compensation after Manchester City were found guilty of the vast majority of 115 breaches of financial rules they had been accused of by the Premier League.
Sanctions on the club are yet to be announced, but repercussions could include a points deduction, expulsion from the Premier League or a huge fine. BBC Sport has been told that the club will appeal.
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The news that City had been found guilty was broken by the Athletic, which reported that 114 of the 115 counts were upheld.
It came 1,327 days after City were charged by the Premier League in February 2023 following a four-year investigation, and 22 months since a hearing by an independent commission concluded.
No official announcement has been made by the Premier League, which has declined to comment.
BBC Sport has been told the independent panel has ruled, and the majority of the charges have been upheld.
Manchester City were accused of a wide-range of rule breaches which centred around claims that they inflated sponsorship revenue from connected companies and made other "off the books" payments to circumvent football's financial rules.
The seismic decisions leaves a huge number of questions about what will happen next, what City's punishment might be and how the current season will be affected.
And one possibility emerging is that rival Premier League sides may take legal action for compensation, claiming they have been impacted by City's actions.
A number of sides, prior to Friday's news, had already started seeking advice over whether they would have a case for financial compensation.
One source, who held a senior executive position at one Premier League club before moving to another, said they expected clubs to submit individual compensation claims against Manchester City.
However, another leading lawyer told the BBC that process could even be centralised by the league.
Such a move is not unprecedented. In June, Everton were told they must pay Burnley £35m after they broke profit and sustainability regulations (PSR) over a three-year period.
Burnley argued the breach impacted their chances of staying in the Premier League, and sought compensation for the losses associated with being relegated.
Everton have appealed, with sources saying they would "robustly and thoroughly" contest the ruling, but it provides an interesting backdrop to the Manchester City case.
Meanwhile, it also emerged that:
- Other Premier League clubs have been formally told about the independent panel's decision. A select group of club directors were informed by email and had to sign a non-disclosure agreement before they could read the document, a source told the BBC. It is not yet known when the decision of the panel will be announced officially.
- Manchester City deny wrongdoing but being found guilty on the most serious charges means they could be looking at a points deduction serious enough to relegate them, large fines or even expulsion from the Premier League
- A sanctions hearing will need to take place to decide the punishment. That has not happened yet and could take months.
- An appeal would then take place - and while it is possible the punishment is not made public until after that, there remains the possibility that any sanctions will be communicated before any appeal takes place
- An appeal process could mean the uncertainty surrounding the case continues to cloud the top flight
- It is understood a number of City players do not have relegation release clauses in their contracts in the event of the club losing their Premier League status as a result of any sanctions
Manchester City declined to comment on whether they had been found guilty, instead providing a statement which read: "Premier League process remains ongoing with significant elements to be completed, and subject to strict confidentiality.
"The club has diligently respected due process for eight years on the basis that the Premier League board and executive would behave as an independent, impartial and fair-minded regulator, free from partisan influence."
- Man City and the 115 charges - key questions answered
- Man City fans face up to reality of guilty verdict
- Everton told to pay Burnley £35m over PSR breach
What is the background?
In February 2023, City were charged with more than 100 breaches of the Premier League's financial rules following a four-year investigation.
The club was referred to an independent commission over allegations it breached financial rules between 2009 and 2018.
The hearing began in September 2024 behind closed doors and concluded that December after around 12 weeks.
The Premier League claimed City breached rules requiring the club to provide "accurate financial information that gives a true and fair view of the club's financial position".
City strongly denied all charges and have said their case is supported by a "comprehensive body of irrefutable evidence".
The club won eight trophies in the period covered by the case, including three Premier League titles, three League Cups, one Community Shield and one FA Cup.
The charges cover the mangerial tenures of Roberto Mancini and Manuel Pellegrini, and the first two years under Pep Guardiola, who left the club after 10 seasons at the end of the 2025-26 campaign.
A separate case between City and the Premier League was also heard last year.
In 2024, an independent arbitration panel found against aspects of the league's Associated Party Transaction regulations (APTs) after City launched an arbitration challenge.
A tribunal held in February 2025 found the Premier League's rules governing sponsorship deals from the period between 2021 and 2024 are "void and unenforceable".
City and the Premier League reached a settlement in September 2025, with the club accepting the APT rules are valid and binding and both parties agreeing to terminate legal proceedings.
The rules were formed by the Premier League to prevent clubs from profiting from commercial deals with companies linked to their owners that are deemed above "fair market value".
What were the 115 charges?
• 54x Failure to provide accurate financial information 2009-10 to 2017-18.
• 14x Failure to provide accurate details for player and manager payments from 2009-10 to 2017-18.
• 5x Failure to comply with Uefa's rules including Financial Fair Play (FFP) 2013-14 to 2017-18.
• 7x Breaching Premier League's Profitability and Sustainability Rules (PSR) 2015-16 to 2017-18.
• 35x Failure to co-operate with Premier League investigations December 2018 - Feb 2023.
There have been suggestions by the Times and football finance expert Kieran Maguire the number of charges is as high as 130. BBC Sport has been unable to verify this.