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.
The news that City had been found guilty was broken by the Athletic,, external 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 have left 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:
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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.
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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
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A sanctions hearing will need to take place to decide the punishment. That has not happened yet and could take months.
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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
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An appeal process could mean the uncertainty surrounding the case continues to cloud the top flight
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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.”
