Arsenal, United, Liverpool and Spurs prepare to sue Manchester City in £800m damages claim

Arsenal, Manchester United, Liverpool and Tottenham have all reserved their right to sue Manchester City following the club’s guilty verdict on Premier League spending rule breaches, with total damages estimated to exceed £800m.

The four clubs served legal notices before the statute of limitations expired, and sports barrister Yasin Patel of Church Court Chambers says further clubs are likely to join any action. A class action lawsuit is among the options being considered, which would see multiple clubs pool their claims against City.

City were found to have made “sham” contracts, inflated approximately £900m worth of deals, and engaged in “widespread” deception, according to the 40-page legal document published by the Premier League. The fraud allegations are significant because they broaden the scope for backdating legal claims, opening the door to damages stretching back over a decade.

Patel outlined several avenues through which clubs could seek compensation. “Four teams have stated they will take legal action but other teams are likely to follow suit,” he said. “In 2013-14 and 2014-15, Norwich and Hull finished 18th respectively. They could argue that, had the Premier League taken action, they may not have been relegated. This is a complex argument, but it illustrates how some clubs may seek compensation.”

He added that relegated clubs would need to demonstrate a direct causal link between City’s alleged conduct and their own financial losses, and suggested a collective claim would be more straightforward than individual actions. “It would probably be easier for teams who were relegated to make this argument collectively rather than individually,” Patel said.

Clubs that missed out on European football are also potential claimants. Patel identified Wigan and Watford — who lost FA Cup finals in 2010-11 and 2018-19 respectively — as sides that could argue City’s presence in the Champions League denied them a European berth.

The four clubs named — Arsenal, United, Liverpool and Spurs — are each estimated to be in line for around £200m in damages, covering lost prize money, commercial revenue and Champions League participation fees. City are currently appealing the Premier League’s sanctions, but the publication of the detailed findings has materially strengthened the legal position of any club considering civil action.