Following the news that Manchester City had been found guilty of nearly all the charges they were facing by a Premier League independent commission, attention has understandably focused on the punishments they might face.
However, the consequences may extend beyond whatever punishment the Premier League eventually imposes.
Other clubs, players, managers, and even former shareholders could potentially examine whether City’s breaches caused them a measurable financial loss.
Several Premier League clubs have already positioned themselves for that possibility. In 2024, Arsenal, Liverpool, Manchester United, and Tottenham reportedly took legal steps to preserve their rights to seek compensation from City if the club were found guilty.
That does not mean claims will necessarily succeed. But City’s rivals now have considerably more reason to examine what the breaches may have cost them.
Football provides numerous ways in which finishing one place higher or lower can have significant financial consequences.
Premier League prize money varies according to finishing position, while Champions League qualification can be worth tens of millions of pounds. Winning the title also brings additional commercial opportunities and sponsorship bonuses.
Liverpool finished one point behind City in both 2018–19 and 2021–22, while Manchester United finished second in 2017–18 and 2020–21. Arsenal were City’s closest challengers in 2022–23 and 2023–24.
Coming second does not establish a right to compensation. Any claimant would need to demonstrate a legal basis for damages and a sufficiently direct connection between City’s breaches and a measurable loss.
There is already an important precedent.
Burnley pursued Everton for compensation after Everton breached the Premier League’s Profitability and Sustainability Rules, arguing that the breach contributed to their relegation in 2021–22. An arbitration tribunal subsequently awarded Burnley more than £30 million, plus interest.
The circumstances are different, but the case demonstrated that financial-rule breaches can potentially lead to compensation for another club.
Players and managers could examine whether they lost contractual bonuses for titles, European qualification, or league positions.
There is also the question of shareholders. Missing Champions League qualification can significantly affect revenues and potentially a club’s valuation. Someone who sold shares during the relevant period might argue that City’s breaches indirectly reduced the value of that investment.
Such a claim would be difficult. Club valuations depend upon numerous factors, and establishing a sufficiently direct connection would be essential.
Punishment may not be the end
Much will depend upon any appeals process, while compensation claims would involve separate questions over causation, limitation periods, and damages.
But the Burnley-Everton case has demonstrated that sporting sanctions need not represent the end of the financial consequences.
For Manchester City, the verdict could therefore be the beginning of a much longer series of legal disputes, which could eventually bankrupt the club.
It is enough to keep an army of UK lawyers in gainful employment for years to come.
