
City Xtra
·4 September 2025
West Ham consider legal battle worth ‘millions’ over Manchester City transfer collapse

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·4 September 2025
Manchester City’s collapsed transfer for West Ham’s Lucas Paqueta in the summer of 2023 could now turn into a high-profile legal battle, it is being reported.
At the time, the Brazilian midfielder was widely expected to make the switch to the Etihad Stadium, with personal terms agreed and talks over a fee at an advanced stage. However, the move was dramatically derailed when Paquetá became the subject of an FA investigation into alleged betting breaches.
Paquetá has since remained a key figure at West Ham, though speculation linking him with City has never fully disappeared. Pep Guardiola’s admiration for the player was clear, with the midfielder seen as an ideal candidate to strengthen the squad in the wake of İlkay Gündoğan’s departure to Barcelona.
But the collapse of the deal, combined with subsequent legal proceedings, ensured that any hopes of reigniting talks were shelved until the matter was resolved. City have moved on in terms of midfield reinforcements, turning instead to the signings of talents such as Tijjani Reijnders and Nico González in the last nine months, while also banking heavily on the development of their younger stars.
Yet the financial and legal implications of the collapsed Lucas Paquetá deal are now resurfacing, threatening to drag the saga back into the spotlight, particularly from the perspective of the player himself and the selling club.
According to the information of The Times’ Martyn Ziegler, Lucas Paquetá and West Ham are considering legal action against the FA for damages over his collapsed move to Manchester City in the summer of 2023.
It is reported that possible legal action could run to tens of millions of pounds, following the 28-year-old being cleared of four spot-fixing charges last month.
The judgment revealed that Paquetá’s KC, Nick De Marco, made a statement to the FA in September 2023 during the investigation into the Brazilian, saying that leaks of the FA’s investigation “led to a collapse of a transfer of the player that was otherwise agreed between [West Ham], and Manchester City from which both the player and [West Ham] would have received substantial sums running into the tens of millions of pounds”.
Should West Ham and Paquetá pursue legal action, the ramifications could be wide-reaching. A successful claim might not only secure compensation for the club and player but also set a precedent for how governing bodies handle investigations that impact major transfer dealings.
For Manchester City, there is no expectation of involvement in any prospective proceedings, yet the saga will serve as a reminder of how external factors can derail even the most advanced transfer plans.
Given Pep Guardiola’s ongoing efforts to refresh his squad, Manchester City may well be thankful they pivoted quickly to alternative targets, but the story underlines the fragile nature of high-value negotiations in football.
Ultimately, the outcome of this potential legal case could alter the way the FA approaches investigations of this nature moving forward, with both West Ham and Paquetá pushing to recover what they see as significant lost earnings.