According to The Independent, if Manchester City is found to have breached Premier League financial rules, several rival clubs are preparing legal action against Manchester City to seek damages that could exceed £200 million. At least four clubs—Arsenal FC, Manchester United FC, Liverpool FC, and Tottenham Hotspur FC—have already reserved their right to claim damages under Rule W of the competition regulations.

Sources told The Independent that the four clubs are Arsenal FC, Manchester United FC, Liverpool FC, and Tottenham Hotspur FC. The Independent contacted all four clubs for comment. Manchester United FC and Tottenham Hotspur FC declined to comment. This legal action is a precautionary measure to preserve their right to sue before the statute of limitations expires.

While some law firms have contacted other clubs that have not yet reserved their rights, it is generally believed that damages claims may no longer be viable due to the passage of time. However, the relevant rules are not explicit on this matter, and lawyers may argue based on the nature of the case that the entire process was initiated before the deadline. This remains a grey area, however.

Several clubs have consulted with law firms to determine whether they are entitled to compensation.

During the period under investigation, for example, Manchester United FC missed the title in the 2011-12 and 2017-18 seasons, while Liverpool FC narrowly missed the title in the 2013-14 season. Manchester City qualified for the Champions League in every season from 2009-10 to 2017-18. However, the scope of damages claims may not be limited to these seasons and lost revenue alone, but could also include "loss of opportunity" in subsequent seasons.

Losses from commercial contracts could also be considered.

A key precedent for this case comes from Burnley's claim against Everton in June this year. An independent panel ruled that the Merseyside club gained a competitive advantage after breaching Premier League's Profit and Sustainability Rules (PSR) in the 2021-22 season, and consequently ordered Everton to pay Burnley £35.1 million in compensation. In that season, Everton finished 16th with 39 points and avoided relegation, while Burnley finished 18th with 35 points and were relegated.

Sources familiar with the process indicated that successful damages claims could result in some claimant clubs receiving compensation exceeding £200 million. According to sources, Arsenal FC was the first club to reserve its right to claim damages, followed by Tottenham Hotspur FC, Liverpool FC, and Manchester United FC.

However, any legal proceedings can only commence after the entire case has concluded and all appeal processes have been exhausted.

Manchester City is expected to pursue every avenue of appeal, as they anticipate an unfavourable verdict on most charges. Manchester City's spokesperson issued a statement regarding the report on Friday, reaffirming the club's position of innocence.

The statement read: "The Premier League process is ongoing, and there are still significant steps to be completed. Subject to strict confidentiality rules, Manchester City Football Club's position remains consistent with our statement in February 2023. The club has followed the correct procedures throughout the past eight years, based on the assumption that the Premier League Board and the governing body will act as independent, impartial, and fair regulators, uninfluenced by any party's interests."

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