Premier League Clubs Seek Legal Advice on Manchester City Charges Compensation

Premier League teams have consulted legal counsel about pursuing compensation linked to the Manchester City charges. Following a prolonged wait, City has been found in breach of most financial regulations they were accused of. The club intends to appeal the decision.

Prior to Friday's announcement, several Premier League clubs had already begun seeking advice on potential compensation claims arising from City's rule violations.

Further details have emerged:

• Other Premier League clubs received formal notification of the independent panel's findings. A select group of directors were informed via email and required to sign non-disclosure agreements to view the document, a source confirmed to the BBC.
• While the Premier League has not yet publicly communicated the outcome, the panel's decided punishment is expected to be released before any appeal process concludes.
• Manchester City denies any wrongdoing. However, being found guilty on the most serious charges could lead to a points deduction significant enough for relegation, substantial fines, or even expulsion from the league.
• The appeal process may prolong the ongoing uncertainty surrounding the case for the top flight.
• A hearing to determine sanctions could still be months away. The panel's ruling on sanctions may not be published until City's appeal is finalized, which could also be a lengthy process.
• Sources indicate that a number of City players do not have relegation release clauses in their contracts should the club lose its Premier League status due to any sanctions.

The news of City's guilt was first reported by The Athletic, which stated that 114 out of 115 charges were upheld. This comes 1,327 days after City was charged by the Premier League in February 2023, following a four-year investigation, and 22 months after an independent commission concluded its hearing.

The Premier League has made no official statement and declined to comment. BBC Sport has been informed that the independent panel has made its ruling, with the majority of charges being upheld.

Manchester City issued a statement: "The Premier League process remains ongoing, with significant elements yet to be completed and subject to strict confidentiality. The club has diligently respected due process for eight years, based on the understanding that the Premier League board and executive would act as an independent, impartial, and fair-minded regulator, free from partisan influence."

One source, who previously held a senior executive position at a Premier League club, anticipates individual compensation claims against Manchester City. Conversely, another leading lawyer suggested the league might centralize the process.

In June, Everton was ordered to pay Burnley £35 million for breaching profit and sustainability regulations over a three-year period. Burnley argued this breach affected their chances of remaining in the Premier League and sought compensation for relegation losses. Everton is appealing the ruling, which provides context for the Manchester City case.

BBC Sport has also learned that City plans to appeal any findings if found guilty.

City faced charges for over 100 breaches of Premier League financial rules in February 2023. The club was referred to an independent commission regarding allegations of financial rule breaches between 2009 and 2018. The hearing, conducted privately, concluded in December after approximately 12 weeks. The Premier League contended City violated rules requiring accurate financial information that reflects the club's true financial position. City has consistently denied all charges, stating their case is supported by "comprehensive evidence."

During the period under scrutiny, City won eight trophies, including three Premier League titles. The charges span the tenures of Roberto Mancini, Manuel Pellegrini, and the initial two years under Pep Guardiola.

A separate case involving City and the Premier League was heard last year. In 2024, an independent arbitration panel ruled against certain aspects of the league's Associated Party Transaction (APT) regulations after City challenged them. A tribunal in February 2025 found the Premier League's rules on sponsorship deals from 2021 to 2024 to be void and unenforceable. City and the Premier League settled in September 2025, with City agreeing to the validity of APT rules and both parties terminating legal proceedings. These rules were established to prevent clubs from benefiting from commercial deals with companies linked to their owners at prices exceeding fair market value.

• 54x Failure to provide accurate financial information (2009-10 to 2017-18).
• 14x Failure to provide accurate details for player and manager payments (2009-10 to 2017-18).
• 5x Failure to comply with UEFA's Financial Fair Play (FFP) rules (2013-14 to 2017-18).
• 7x Breaching Premier League's Profitability and Sustainability Rules (PSR) (2015-16 to 2017-18).
• 35x Failure to cooperate with Premier League investigations (December 2018 - Feb 2023).

Reports from The Times and football finance expert Kieran Maguire suggest the number of charges could be as high as 130, though BBC Sport could not verify this.