The Premier League will end up paying over £100million in legal fees this season as they challenge Manchester City in their FFP case, it has been claimed, while the apparent failure to investigate an alleged shareholder loan to Arsenal has been questioned.
The Premier League conducted a four-year investigation into the club’s finances, looking at the period between 2009 and 2018 in particular. They subsequently charged Man City with breaking financial rules on 115 occasions, with the charges since increased to 130.
City vehemently deny any wrongdoing but have been referred to an independent commission.
The hearing took place between September and December last year and the final verdict was expected to be released by the end of March.
That ultimately did not happen, though the judgement should be announced before the end of the season.
Football Insider have now provided their information regarding the Premier League’s case against City. They state that the league will rack up over £100m in legal bills this campaign as they battle City on multiple fronts.
This is described as a ‘crushing blow’ for league executives as it is impacting the profit being made.
The Premier League’s accounts have revealed that their administrative expenses rose from £123.7m in 2022-23 to £200.2m in 2023-24.
It is claimed that up to £100m of their expenses for last season will have likely been legal fees as they deducted points from both Everton and Nottingham Forest for breaking profit and sustainability (PSR) regulations.
The Premier League will likely have to spend even more money on City’s case given the seriousness of the allegations and how hard key figures at the Etihad are fighting back.
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Man City going head-to-head with the Premier League
City and the Premier League are also locked in a legal wrangle over associated party transaction (APT) rules.
Following a hearing in June last year, the tribunal overseeing the case deemed that the Premier League’s rules were ‘void and unenforceable’.
The league has initiated amendments to their own rules, but these will also have to be approved independently as City push back against them.
It emerged on Saturday that City have accused the Premier League of ‘distorting’ financial rules in favour of other clubs such as Arsenal and Everton.
While City’s sponsorship deals have been intensely scrutinised, they feel that the massive shareholder loans that the likes of Arsenal, Everton and Brighton have benefitted from have barely been checked.
Arsenal, for example, allegedly received £259m in the 2022-23 season, and City claim that such payments could create financial imbalance in the top flight.
Man City FFP: Club ‘confidence’ emerges
Last week, it was revealed that City are ‘confident’ they will avoid punishments such as a transfer ban or the removal of silverware.
Although, Citizens chiefs are more concerned about a points deduction, in the event they are found guilty in their 130 charges case.
The report also stated that director of football Txiki Begiristain has amended the date of his exit.