Manchester United have reportedly evaluated the financial consequences stemming from Manchester City's rule-breaking. United players could potentially have grounds for compensation claims after being denied Champions League qualification and league titles by their cross-city rivals during the period they are accused of breaching regulations.
Playing staff typically see their weekly salaries cut by 25 per cent when failing to qualify for UEFA's most profitable competition. For the majority of players, this is understood to amount to millions of pounds.
Financial Impact on United
City pipped United to fourth spot and qualification on goal difference during the 2015/16 Premier League campaign. United have also finished as runners-up to their local rivals in 2011/12, 2017/18 and 2020/21, though the latter falls beyond the nine-year timeframe under scrutiny.
The Athletic reports that United are primarily concentrating on campaigns where City's final league position had the most significant financial impact upon them. Several other Premier League sides are thought to be examining how City affected their prospects of silverware in past seasons.
Legal Pathways and Compensation
It's claimed that such evaluations have been ongoing for a considerable period. Clubs are now seeking to establish what they might be legally entitled to should City face penalties. Section W of the Premier League's regulations offers a pathway to compensation for clubs, as demonstrated by Burnley in their £35m claim against Everton.
Climbing just one position in the Premier League standings is worth approximately £2-3million. Meanwhile, securing Champions League qualification proves far more financially rewarding than Europa League participation, with clubs pocketing £16million simply for taking part in its league phase - more than three times the £4million awarded for Europa League involvement.
City Found Guilty
United are one of four Premier League sides understood to have reserved the right to pursue damages should City be found guilty. Arsenal, Liverpool and Tottenham were the other clubs who filed legal notices before a potential statute of limitations deadline in 2024, formally registering possible compensation claims for arbitration.
Two years later, an independent commission has ruled City guilty of all charges relating to serious breaches of the Premier League's financial regulations across a nine-season period spanning 2009/10 to 2017/18. Manchester City were found guilty on 114 of 115 charges against them.
Their conclusions include that City were substantially in breach of the Premier League's spending restrictions and accused them of 'sham' transactions to artificially inflate their revenue by £900million. City, however, continue to maintain their innocence and have now lodged an appeal to the chair of the judicial panel. They argue that the commission's decision "contains clear material errors, of law, principle and fact and is unsafe."
Recruitment Strategy Impact
The report adds that sources close to United's recruitment strategy indicate that attempting to outmanoeuvre City contributed to the escalating expenditure. Substantial funds were allocated to securing players ahead of their local rivals. United handed Alexis Sanchez a record-breaking deal that had repercussions for subsequent negotiations with other squad members, including David de Gea. They eventually sent the ex-Arsenal forward on loan to Inter within 18 months before his departure on a free transfer.
United also encountered rivalry from City when bringing back Cristiano Ronaldo, whose deal they subsequently terminated by mutual agreement six months ahead of its expiry date.
