The Premier League is currently facing a civil war between Manchester City and rival clubs, sparking a new phase of legal action. Rival clubs are expected to send legal notices to Manchester City, reserving their rights to seek damages for alleged breach of contract. These claims have a six-year limitation period, and with accusations of rule-breaking emerging in November 2018, clubs are seeking legal advice before deciding on their next steps.
City has consistently denied breaking any rules, but the time taken by the Premier League to investigate and bring charges has prompted clubs to take legal action. The ongoing independent commission investigating over 100 alleged rule breaches will determine the extent of damages sought by rival clubs. Although clubs are hesitant to take action before the commission’s findings, they may feel compelled to do so depending on the outcome.
A reservation of rights letter is typically served when a party becomes aware of potential breaches but needs time to investigate and consider its options. The 1980 Limitation Act allows for a six-year period from the awareness of a breach with reasonable diligence. Given City’s denials and the emergence of allegations in 2018, the timeline for potential legal action remains uncertain.
City claims to have “irrefutable evidence” supporting their innocence and looks forward to resolving the matter. The ongoing hearing concerning Premier League rules related to financial information and good faith is expected to last around 10 weeks. City previously challenged the associated party transaction rules in a separate arbitration tribunal, with findings published this week.
The war between City and the league intensified after an explosive email was sent to other clubs, claiming inaccuracies in the summary of findings and accusing the league of being misleading. Rivals have accused City of trying to seize control of the competition, particularly regarding the APT rules. These rules aim to ensure fair market value in commercial deals between clubs and entities linked to their ownership, preventing artificial inflation of revenue.
City argues that the APT rules are void due to breaches of competition law, while the league maintains that the judgment endorsed the rules overall. The tribunal panel, consisting of retired senior judges, is expected to provide further clarification on the APT regulations. However, a definitive response may not be issued before an upcoming emergency meeting to discuss the implications for clubs.
The outcome of the ongoing legal battle between Manchester City and the Premier League remains uncertain. Rival clubs are preparing to seek damages for alleged breaches of contract, setting the stage for a potential showdown in the coming months. As the ‘trial of the century’ continues, the football world awaits the resolution of this high-stakes conflict.
