Everton have issued a statement in response to Burnley’s accusations, but Manchester City could soon face a similar fate
Manchester City face potential lawsuit from rivals (Image: Getty Images)
Manchester City’s rivals could each claim more than £100m in compensation, it has been claimed, after Burnley achieved a landmark legal success against Everton.
The Clarets received more than £30 million plus interest from Everton, determined by the independent Premier League Commission. The Merseysiders were ruled to have gained a sporting advantage by breaching profitability and sustainability rules, and the Merseysiders are appealing the decision.
In this case, the commission awarded £26 million in relegation losses and £9.1 million in interest. According to the commission’s ruling, the Toffees “accept that the PSR breach resulted in a sporting advantage, but dispute the extent and effect of that benefit”.
Everton provided an expert who stated that “Burnley suffered no financial loss after being relegated”. However, the Clarets’ expert witness claimed they had lost £51.7m before interest.
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Premier League rules do not allow clubs to sue each other through the courts, but they can do so through arbitration. And City could face similar punishment if they are found guilty of one of the 115 serious breaches of Premier League rules.
Arsenal, Manchester United, Liverpool and Spurs served City with legal notice in 2024, reserving the right to seek compensation if found guilty.
That would open the door for compensation claims by these clubs. They could argue that the alleged violations gave City a sporting advantage over a number of seasons between 2009 and 2017.
Everton issue strong statement following committee decision (Image: Getty Images)
According to the Times, sources involved in the process estimate that some of these clubs were “calculating potential losses well in excess of £100m”, extending to lost income, including missing out on the Champions League, among other things. As Everton’s example shows, this figure will rise significantly as interest grows.
Manchester City won the Premier League twice during the period and qualified for the Champions League for seven consecutive seasons.
The club has maintained its innocence throughout the process, with City chairman Khaldoon al-Mubarak recently vowing to break his silence once the verdict is out.
“I want you to be as consistent as you have been. I can’t say much until the verdict is out. Once the verdict is out, believe me, we’re going to have a great roundtable together and say everything I’ve wanted to say for the last three years,” he said.
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