Man City could have to pay other Premier League clubs ‘unlimited compensation’ if they are found guilty of breaching financial fair play rules, according to their former financial adviser Stefan Borson. An independent commission is set to rule on the 115 charges facing Man City at some stage during the season ahead, with The Times reporting earlier this month that the....KINDLY READ THE FULL STORY HERE▶
Man City could have to pay other Premier League clubs ‘unlimited compensation’ if they are found guilty of breaching financial fair play rules, according to their former financial adviser Stefan Borson.
An independent commission is set to rule on the 115 charges facing Man City at some stage during the season ahead, with The Times reporting earlier this month that the hearing could begin as early as mid-September.
Man City’s alleged breaches relate to rules requiring the reporting of accurate financial information, the submission of details of manager and player pay information within the relevant contracts, a club’s responsibility as a Premier League member to adhere to UEFA’s financial regulations and to the league’s own profitability and sustainability regulations.
The club are also alleged to have breached rules requiring them to co-operate and assist with the Premier League’s investigation into those breaches, which the league said began in December 2018.
The report in The Times added:
‘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.’
Responding to the claims in The Times article, former Man City financial adviser Borson insisted that there are only a limited number of ways Premier League clubs can take action against each other.
“It’s not suing,” Borson told Football Insider. “The Premier League clubs agree to only arbitrate disputes between themselves, which is effectively private hearings of the type they are going through with the associated party transactions.
“Likewise, under the FA rules, all parties agree only to arbitration.
“This won’t be suing in the courts and there won’t even be the possibility for appeal to the Court of Arbitration for Sport, so there are very limited ways in which clubs can take action against each other.
“In this case, under thrules prosecuting City, rule W.51.5 gives the independent commission hearing City’s case the power to award e Premier League unlimited compensation to any other parties.
“You would think it’s likely that, if there are findings against City, that the clubs would want to explore routes in which they could indeed get compensation out of either the independent commission themselves or at a follow-up arbitration down the line.
“It is going to be very complicated if there are findings against City and other clubs express a desire to seek compensation.
“That process in itself is going to be extraordinarily complex and time consuming.
“At the moment, we really have got no collar on how that might work.”
