Arsenal are among four Premier League clubs to have taken legal action as they prepare for potential compensation claims against Manchester City, should the reigning champions be found guilty of breaching financial rules.
Arsenal, alongside Manchester United, Liverpool, and Tottenham Hotspur, have formally registered their intent to seek compensation via arbitration. City face 115 charges related to financial misconduct, with no verdict expected until the new year. City deny all accusations.
The decision by Arsenal and the other clubs comes amid fears that waiting for an official verdict could leave their compensation claims outside the applicable time frame according to an exclusive in Thursday’s edition of The Times. The claims are being made under Premier League Rule X, which permits such disputes to be arbitrated rather than being settled in court. This pre-emptive move is a response to legal advice that emphasised the risk of claims being considered out of time if they waited for a conclusive ruling from the independent regulatory commission.
The legal manoeuvres are seen as part of a broader divide across the league, with Manchester City viewing the actions of Arsenal, Manchester United, Liverpool, and Tottenham as an orchestrated vendetta against them. While none of the clubs involved have commented publicly on the arbitration notices, it’s understood that they acted before a potential statute of limitations cut-off. The legal advice they received pointed to a possible six-year deadline, dating from November 2018, when allegations against City first surfaced following the Football Leaks revelations by German publication Der Spiegel.
If Manchester City are found guilty of the alleged breaches, Arsenal and their rivals are poised to pursue compensation for financial losses relating to missed opportunities, including lost revenue from league finishes, Champions League qualification, and other revenue streams, which could amount to hundreds of millions of pounds. The charges against City include failing to provide accurate financial information for multiple seasons, concealing managerial payments during Roberto Mancini‘s tenure, and not disclosing full player remuneration details. Additionally, City have been accused of non-cooperation with the ongoing investigation, including a failure to provide necessary documents over several years.
Arsenal’s pursuit of legal action is particularly relevant given their performances between 2009 and 2016, a period in which they consistently finished in the top four under manager Arsène Wenger. Their highest league finish in this era was second place in the 2015-16 season, behind Leicester City. The allegations against City, which cover financial irregularities dating back to 2009, imply that unfair competitive advantages could have affected the standings and financial outcomes of Arsenal and other top clubs.
The potential for compensation claims also echoes last season’s actions against Everton, where several clubs, including Leeds United and Leicester City, lodged claims after Everton were sanctioned for breaching financial rules. Although those claims have since been withdrawn or remain unresolved, they set a precedent for this latest move against Manchester City. Arsenal’s decision to act now ensures that, should City be found guilty, they are well-placed to argue for financial recompense for what they perceive as lost opportunities directly related to City’s alleged misconduct.
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