Manchester United have conducted internal assessments of the economic impact of the seasons in which Manchester City broke financial rules, and United players could be due compensation for lost wages after being directly affected by missing out on a Champions League place to their rivals.
Missing out on qualification typically results in a 25 per cent drop in wages due to reduction clauses in United players' contracts. For players earning hundreds of thousands of pounds every week, any potential loss of earnings would run into millions, especially when bonuses related to qualifying are factored in.
City's breaches and United's losses
City were charged with breaking 114 financial rules between the 2009-10 and 2017-18 campaigns and denied United a top-four spot by taking the final place above them on goal difference in the 2015/16 season. United have also finished second to City three times since 2009, though the 2020-21 season falls outside the years City were found guilty of cheating.
The Athletic reports that United are primarily focusing on campaigns in which City's league position most directly affected them financially. Other Premier League sides are also said to be examining the impact of City's actions, with the situation set to become messier.
Sources suggest assessments at United have been ongoing for some time, despite Sir Jim Ratcliffe having previously taken a sympathetic stance publicly toward City's case. Clubs are now seeking to establish what they may be legally entitled to if City face sanctions.
Compensation pathways and figures
Section W of the Premier League's regulations provides a pathway to compensation for clubs, as Burnley utilised in their £35m case against Everton, which the latter are still appealing. Climbing just one position in the Premier League standings is worth approximately £2-3million.
Champions League qualification proves far more profitable than Europa League entry. Clubs pocket £16million simply for taking part in its league phase, over three times the £4million awarded for Europa League participation.
United are amongst four Premier League sides understood to have retained the right to pursue damages should City be found guilty. Arsenal, Liverpool and Tottenham Hotspur were the other clubs that filed legal notices ahead of a potential statute of limitations deadline in 2024, formally registering possible compensation claims for arbitration.
Commission ruling and appeals
Two years later, an independent commission has ruled City guilty of all charges relating to serious violations of the Premier League's financial regulations across a nine-season period from 2009/10 to 2017/18. Their conclusions include that City were substantially in breach of the Premier League's spending restrictions and that they were accused of 'sham' deals to artificially inflate their revenue by £900million.
City, however, continue to protest their innocence and have now appealed to the chair of the judicial panel. They argue that the commission's ruling "contains clear material errors, of law, principle and fact and is unsafe."
The Athletic also reports that sources close to United's recruitment strategy suggest the desire to outmanoeuvre City played a part in escalating expenditure, with substantial funds devoted to beating their rivals to signings.
In 2018, United brought in then Man City target Alexis Sanchez on a record-breaking deal that had knock-on effects for subsequent contracts, including David de Gea's. The club eventually sent him on loan to Inter within 18 months before he departed for nothing. They also went head-to-head with City when bringing back Cristiano Ronaldo, whose deal they later cancelled by mutual agreement six months before its expiry. More recently, City pipped United to Elliot Anderson this summer.
The FA, meanwhile, have broken their silence on the City saga. A statement released on Friday read: "The Independent Commission’s decision has significant implications for the integrity of the game. We are carefully considering the decision and its implications and will take action where appropriate. As proceedings between the Premier League and Manchester City Football Club remain ongoing, we do not intend to comment further at this stage. We will, however, continue to monitor developments closely."