Four Premier League clubs could claim over £200m from Manchester City

Arsenal, Manchester United, Liverpool and Tottenham Hotspur are preparing to seek financial compensation from Manchester City that could exceed £200m for some claimants, according to sources with knowledge of the details. The four clubs have locked in their right to pursue damages for loss of earnings while the Premier League's long-running case over 115 alleged financial breaches moves toward a conclusion. No official verdict has been issued, but rivals are already exploring every available legal route.

Most reports suggest Manchester City will be found guilty of nearly all of the charges related to alleged breaches of the competition's financial rules. The potential claimants believe those practices handed City a sporting advantage that translated into titles, Champions League qualification and commercial contracts that would otherwise have gone their way.

• Arsenal, Manchester United, Liverpool and Tottenham all preserved their right to claim damages before the limitation period closed.
• A successful legal action against Manchester City could be worth more than £200m to some of the clubs involved.
• The key precedent is the Burnley-Everton case, in which Burnley received £35.1m in compensation earlier this year.
• Manchester City maintain their innocence and will pursue every avenue of appeal if the verdict goes against them.
• No compensation claim can move forward until the main case and the full appeals process are complete.

Section W of the Premier League rules opens the door to compensation

The potential claims rest on Section W of the competition's regulations, which covers the preservation of a club's right to seek compensation for loss of earnings. Arsenal, Liverpool, Tottenham and Manchester United all registered their positions within the legal window, effectively freezing their ability to sue for damages until the main case is resolved.

The race to stop the claim from expiring

Law firms have since reached out to clubs that did not preserve their rights, but there is a belief among experts that those opportunities have now lapsed because of the time that has passed. The rules are not specific, however, and lawyers could argue the whole matter forms part of a single proceeding that began before the limitation period expired. The issue remains a legal grey area.

Lost titles and Champions League places during the period under investigation

The investigation covers seasons in which Manchester City regularly finished ahead of their closest rivals. Manchester United ended as runners-up in 2011-12 and 2017-18, while Liverpool fell just short of the title in 2013-14. City qualified for the Champions League in every season from 2009-10 through to 2017-18.

The claims are not limited to directly affected campaigns. Clubs are also looking at the concept of loss of chance in subsequent seasons, as well as the financial impact of commercial deals that fell away without a title or sustained presence among Europe's elite.

Burnley vs Everton: the blueprint for claiming damages

English football already has a clear precedent for this type of claim. In June, an independent commission ordered Everton to pay £35.1m to Burnley after concluding that the Merseyside club's breach of Profit and Sustainability Rules in 2021-22 had given them a sporting advantage. Everton stayed up in 16th place on 39 points, while Burnley went down in 18th with 35.

The gap between survival and relegation underpinned the size of that award. That ruling now provides the template Arsenal, Liverpool, United and Tottenham could use to calculate the damage they believe the City case has caused them.

Arsenal led the way and three other clubs followed

Sources say Arsenal were the first to protect their right to claim compensation, with Tottenham, Liverpool and Manchester United following suit. United and Tottenham declined to comment when approached about the legal steps they have taken, while the other two clubs have also remained silent on the matter so far.

Manchester City respond and signal a lengthy legal fight

The club have made clear they will exhaust every appeal route if the final verdict finds them guilty of most of the charges. A City spokesperson issued a statement in response to reports pointing toward a forthcoming adverse ruling, reasserting the club's innocence and underlining the confidentiality that surrounds the entire process.

The Premier League process remains ongoing, with significant elements to be completed, and subject to strict confidentiality. As such Manchester City FC's position remains consistent with the club's statement of February 2023.

The club added that it has respected due process for eight years on the basis that the Premier League would act as an independent, impartial and fair-minded regulator free from partisan influence. That statement signals a prolonged defence strategy, which would inevitably delay any compensation claim from the clubs that have already preserved their rights.