Premier League’s legal battle with Manchester City

Lea Hogg September 4, 2024

SiGMA news

Premier League’s legal battle with Manchester City

The Premier League’s legal showdown with Manchester City over 115 alleged financial breaches could leave English football’s top tier with a staggering legal bill, even if the Premier League wins the case. The mounting costs, potentially reaching tens of millions, have already raised alarms among Premier League clubs, especially after a recent legal skirmish with Everton left the league footing a significant portion of the bill.

In a precedent-setting decision, the Premier League was recently ordered to cover £3.2 million of the £4.9 million costs incurred in its Profit and Sustainability Rules (PSR) case against Everton, where the Merseyside club’s initial 10-point deduction was reduced to six on appeal. Everton managed to argue that the Premier League’s legal expenses were “unexplained and inexplicable,” resulting in the league being held responsible for most of the costs.

This ruling has sparked concern among Premier League clubs as the league prepares to face Manchester City in a high-stakes hearing later this month. The case, which will be conducted behind closed doors, pits the Premier League against a formidable legal team assembled by City, featuring Lord Pannick KC, the barrister who famously helped the club overturn UEFA’s Champions League ban. Pannick’s services are rumoured to cost around £5,000 per hour, reflecting the enormous financial stakes involved.

Financial challenges in a high profile case

The Premier League has also enlisted top-tier legal talent, including Adam Lewis KC from Blackstone Chambers and the prominent law firm Bird and Bird. Despite the league’s efforts, the costs have already soared into the tens of millions, with no end in sight. The financial burden of this case will inevitably fall on the Premier League’s coffers, impacting all its member clubs.

Even if Manchester City loses, it’s unlikely the club would demand the Premier League cover all legal expenses, given their contentious history. However, the league’s financial exposure remains significant, potentially forcing clubs to shoulder these eye-watering costs.

The Premier League’s struggles aren’t limited to this case. After Leicester City avoided a points deduction for PSR breaches, citing relegation as grounds for appeal, the league is under increasing pressure to reassess and tighten its rules. The Premier League described the ruling as “surprising and disappointing,” signaling further legal complexities ahead.

As this legal saga unfolds, the Premier League’s financial and regulatory framework faces unprecedented scrutiny, with potential consequences that could reverberate throughout English football.