Manchester City players consider legal action after financial breaches ruling
Manchester City’s players could explore legal action to terminate their contracts after an independent commission found the club guilty of serious Premier League financial breaches, a leading barrister has warned, reports BritPanorama.
The potential for legal action adds pressure on the defending champions as they prepare to appeal the ruling. No City player has publicly announced plans to leave or take legal action, yet the uncertainty surrounding the club remains palpable.
Erling Haaland and his team-mates are not believed to have relegation clauses in their contracts, but barrister Paul Gilroy KC stated they might argue that the club breached an implied duty of trust and confidence. “A player could say, ‘You’ve breached the implied term of trust and confidence,’” Gilroy mentioned during an appearance on the Stick to Football podcast.
City are contesting the commission’s findings, which concluded that the club recorded nearly £950 million in sponsorship revenue linked to Abu Dhabi companies during the period from 2009-10 to 2017-18; approximately £830 million of that figure was reportedly funded by Abu Dhabi United Group rather than the stated sponsors. The arrangements were identified as inflating revenue to create the appearance of compliance with financial regulations.
City has issued statements denying any wrongdoing, with chief executive Ferran Soriano asserting that the club possesses “irrefutable evidence” regarding the sources of its sponsorship revenue. Despite the ruling, no sporting sanctions have yet been imposed on City.
The ramifications of the ruling extend beyond the club, as fellow Premier League teams are considering compensation claims linked to lost trophies, league positions, and Champions League qualification. Rivals Arsenal, Manchester United, Liverpool, and Tottenham have previously reserved the right to take legal action, with potential claims aggregating as high as £1 billion.
Khaldoon Al Mubarak, City’s chairman, may complicate matters further, as reports suggest he has been listed as an approved diplomat in the UK since 2020, a status that could impact legal proceedings against him personally, though it does not absolve the club from liability.
The situation is fluid, with legal experts warning that a swift resolution is improbable, and the appeal process is expected to prolong the ongoing uncertainty surrounding potential penalties and associated claims.
This saga illustrates the intricate dance between football governance and finance, highlighting how the sport’s commercial dynamics can lead to far-reaching consequences, well beyond the pitch.
