Manchester United, Liverpool, Arsenal and Tottenham will seek compensation if Manchester City are found guilty of breaking Premier League financial rules, according to reports.
City were charged and referred to an independent commission last February after a four-year investigation. They were hit with a total of 115 charges, with the alleged offences said to have taken place between 2009 and 2018.
The reigning Premier League champions have strongly denied any wrongdoing and have maintained that their case is supported by a ‘comprehensive body of irrefutable evidence’.
United, Liverpool, Arsenal and Tottenham have submitted legal notices reserving the right to claim compensation if City are found guilty of serious charges among the 115 alleged financial breaches, according to The Times.
It is said that all four clubs were advised by lawyers that there was a potential six-year statute of limitations period, with the deadline expiring last week.
If the charges against City are proven, clubs could claim for loss of income for missing out on Premier League titles and qualification for the Champions League across multiple seasons.
Clubs are not allowed to sue each other in the courts as they are prohibited from doing so by Premier League rules. However, they are allowed to submit compensation claims through arbitration under Rule X.
Leeds United, Leicester City, Nottingham Forest, Burnley and Southampton applied for compensation when Everton were found to have breached profit and sustainability rules last season. However, those claims have since been withdrawn or remain unresolved.
A verdict into the charges facing City is not due to be announced until next year. If they are found guilty, a range of punishments could be handed down including a limitless fine and potential expulsion from the Premier League, though this would be extreme.
City are accused of breaking the rules over nine seasons by allegedly failing to provide accurate financial information. Allegedly, they did not fully disclose the financial remunerations that were made to one of their managers over a four-year period.
The Premier League also allege that City failed to comply with UEFA’s financial fair play rules over a five-year period. City have also been accused of failing to fully co-operate with the Premier League‘s investigation into their financial dealings.
They have strenuously denied the allegations.