Man City FFP: £40m Everton compensation ‘sets legal precedent’ to boost Arsenal, Man Utd and Liverpool | OneFootball

Everton have been ordered to pay Burnley £40m in compensation for breaching Premier League spending rules and the ‘legal precedent set’ could be very bad news for Manchester City as we wait for the verdict on their 115 financial fair play (FFP) charges.

The Toffees were deducted ten points in late 2023 – reduced to six points on appeal in early 2024 – for breaching Profitability and Sustainability Rules (PSR) in the 2021/22 season.

Burnley then sued Everton after they were relegated to the Championship in 2022, arguing that they would have retained their top flight status had the points been deducted during the season in which the breach too place.

Burnley have now won that legal battle, though Everton are appealing after being ordered to pay the Clarets £40m in compensation on the legal principle of ‘loss of chance’, according to an article in The Lawyer.

The report adds:

The verdict could have far-reaching consequences for Manchester City and their rivals as we still wait for the verdict on their 115 alleged breaches of FFP.

An independent commission hearing to examine all 115 charges laid by the Premier League against Man City started in September 2024 and ended in December.

The Premier League opened an investigation into Man City way back in 2018 and after a number of legal delays, charges were finally laid in February 2023 and the club were referred to an independent commission.

The charges against the Citizens relate to the requirement to accurately report financial information, including around the value of sponsorship deals, the submission of details of manager and player pay information and to a club’s responsibility as a Premier League member to adhere to UEFA’s financial regulations and to the league’s own profitability and sustainability rules (PSR).

They are also accused of failing to co-operate with the league’s investigation. In all, there are charges relating to every season between 2009-10 and 2022-23.

Possible sanctions range from a fine to a hefty points deduction, while City could also be retrospectively stripped of titles.

The ramifications

The Lawyer adds that ‘Manchester City and its rivals will be closely following the appeal and any legal precedent it sets’.

‘Several Premier League clubs are understood to have lined up legal counsel to sue City for compensation, should it be found to have breached League rules in the 115 charges case brought against it.’

Say City had been docked six points in each of the 14 breached seasons they would have two Premier League titles; not six.

Arsenal would have a couple more, Liverpool would have won three more under Jurgen Klopp and Sergio Aguerooooo wouldn’t have broken Manchester United hearts in 2011/12.

They also wouldn’t have qualified for the Champion League in 2015/2016, the season before Pep Guardiola agreed to join the club.

How much revenue have rival clubs been denied by one of the top two Premier League coaches of all time? A not insignificant sum.