Liverpool and other rivals of Manchester City could pursue claims exceeding £100 million in compensation each, following Burnley's landmark legal victory against Everton. The Clarets were awarded more than £30 million plus interest from Everton by an independent Premier League commission, which determined that Everton gained a sporting advantage through breaching Profitability and Sustainability Rules. Everton is currently appealing the decision.
In the case, the commission granted £26 million for losses stemming from relegation and £9.1 million in interest. According to the commission's judgment, the club "accepted that its breach of the PSR conferred a sporting advantage but disputes both the extent and effect of that advantage." Everton presented an expert who maintained "that Burnley had suffered no financial loss following relegation," while Burnley's expert argued they had lost £51.7 million before interest.
Compensation Pathways for Clubs
Premier League regulations prevent clubs from suing one another in courts, but they can pursue action through arbitration. Manchester City could face similar sanctions if found guilty of serious charges among their alleged 115 breaches of Premier League rules. Four clubs—Arsenal, Manchester United, Liverpool, and Tottenham—issued legal notices to City back in 2024, reserving the right to pursue compensation if City are found guilty.
If that occurs, it paves the way for compensation claims from those clubs, who could argue that the alleged violations handed City sporting advantages over them across several seasons between 2009 and 2017. According to The Times, sources close to the process suggest some of those clubs "had calculated potential losses costing significantly more than £100 million"—attributable to lost income, particularly missing out on Champions League football.
Interest and Precedent
As the Everton case demonstrated, that figure would increase considerably once interest is factored in. Manchester City claimed two Premier League titles and secured Champions League qualification in seven consecutive seasons during the period under scrutiny. The Liverpool Echo reported that clubs could seek compensation if City are found guilty.
City have maintained their innocence throughout proceedings, and chairman Khaldoon Al-Mubarak recently pledged to speak out once a verdict has been reached. He said: "Let me be as consistent as I've always been. Until we have a ruling, I can't say much. Once we have a ruling, believe me, we're going to have a wonderful sit down together and I'll say everything I've wanted to say for the last three years."
