According to a new report in the Telegraph, the Premier League's "civil war" is about to enter a new phase, with Manchester City's rivals potentially filing a claim against the Premier League over allegations made against the club. The news signals a possible increase in City's legal woes.
Reports indicate that other clubs plan to take action to reserve the right to seek compensation as the Premier League's investigation into Manchester City's alleged breach of financial rules continues. Those clubs are expected to send City a legal notice next month indicating their intention to make a claim if necessary.
There is a belief within the Premier League that clubs must act to protect their interests during the so-called "trial of the century". Breach of contract claims usually have a six-year statute of limitations, and several years have passed since November 2018, when Der Spiegel exposed City's alleged breaches.
Manchester City have been adamant in denying that they have broken any rules, but the Premier League investigation and allegations have been going on for a long time. It is understood that clubs are seeking legal advice on the issue in order to make informed decisions when deciding how to act.
Those clubs competing with City for major trophies and European qualification could be most at risk if the independent commission finds serious misconduct in its investigation into more than 100 alleged breaches. However, the final outcome will depend on the commission's findings and the outcome of any possible appeals, so the process could last months.
A reservation of rights letter is usually issued when one party becomes aware of a potential breach of contract by the other party, but it takes time to investigate and consider the options. Under the provisions of the Limitation Act 1980, there is a six-year period counting from when any potential breach comes to the reasonable notice of the relevant party, within which the relevant party is entitled to bring proceedings. However, given City's consistent denials and the fact that the allegations initially came to light via Der Spiegel in 2018, this point in time could lead to differing interpretations and disputes.
