Premier League clubs who are considering suing Manchester City for compensation over the 115 alleged rules breaches may have to lodge legal claims before the outcome of the case is known because of time limits.
Legal experts have told The Times there is a six-year limitation period for bringing a claim for breach of contract, which could apply in City’s case and potentially expire in November. It will then be six years since the publication of the Football Leaks documents by the German website Der Spiegel.
The outcome of
the independent commission’s hearing into City’s alleged breaches of Premier League rules will not be known by then, however. That hearing is set to start next month and last ten weeks, with the outcome not known until early in the new year and any appeal process potentially concluded before the end of the season.
It is believed some clubs have taken legal advice over possible compensation claims, which could total hundreds of millions of pounds. If the serious charges against City are proved, clubs could claim for loss of income for missing out on the league title or European competitions over the course of several seasons.
When Everton were docked points last season for a breach of Profitability and Sustainability Rules, the same independent commission was also given the power to rule on compensation claims from rival clubs. Clubs have been given no indication of a similar arrangement for the City hearing and may have to lodge direct legal claims.
The 1980 Limitation Act sets a six-year limitation period for legal claims for breaches of contract in the UK, but allows an exception where that breach has been concealed. A senior lawyer with wide experience of legal cases in sport said that one course of legal action by rival clubs would be for alleged breach of contract.
“There is a six-year limitation period under the Limitation Act but that is subject to an exception where a person has concealed their breach, in which case you must bring the claim within six years of when you could have discovered the breach acting reasonably,” the lawyer said. “It could be argued therefore that the six years might begin from Der Spiegel’s first publication.”
Clubs cannot sue each other through the courts under Premier League rules but they can do so through arbitration.
City are facing the threat of relegation from the Premier League if the most serious charges against them are proved.
The alleged rule breaches include not providing accurate financial information for nine separate seasons, not providing full details of the manager Roberto Mancini’s pay over the four seasons he was at the club from 2009-13 and not providing full details of players’ remuneration — including the former midfielder Yaya Touré — over six seasons from 2010 to 2016.
City have always denied any wrongdoing and say they have “irrefutable evidence” that will clear them. They have employed Lord Pannick KC to lead the club’s defence against the charges.
The Premier League launched an investigation into City after Der Spiegel published emails and documents on November 5, 2018.
City were banned by Uefa for two years of European competition in 2019, only for that to be overturned in the Court of Arbitration for Sport (CAS). Under Premier League rules, City will not be able to appeal to the CAS.
Meanwhile, the verdict over Leicester City’s alleged breach of the Premier League’s Profitability and Sustainability Rules may not arrive until 2025. The club, who were promoted after winning the Sky Bet Championship last season, have been charged with two breaches of financial rules that could land them with a points deduction. The hearing may not take place until later this year but there is then likely to be an appeal process, which would delay the verdict.
From the Times.
https://archive.ph/ny61K