Premier League could be left with an EIGHT-FIGURE legal bill for taking Man City to court – even if they win – after already having to pay £3.2m following the PSR case involving Everton
The Premier League could face a legal bill running into tens of millions for their lawsuit against Manchester City even if they win.
In a move that has caused major concern among some clubs, the top flight has been ordered to foot the bulk of the bill for its row with Everton last year. Officials had attempted to force the Toffees to settle a £4.9m bill for the Profit and Sustainability case, with the Merseyside club being deducted 10 points, which were reduced to six on appeal.
However, a committee and appeals panel ruled that Everton were liable for around a third of the £1.7m transfer fee, with the top division paying the remaining £3.2m.
The Premier League and City will face off behind closed doors later this month in a highly anticipated hearing into 115 alleged breaches of financial regulations by the champions. City have assembled an elite team of lawyers featuring some of the continent’s best legal minds, including Lord Pannick KC, regarded as Britain’s most senior barrister. Pannick, who represented City when they overturned UEFA’s Champions League ban, is said to charge around £5,000 an hour.
On the Premier League side, Adam Lewis KC has been signed, from the same Blackstone Chambers as Pannick, along with leading law firm Bird and Bird.
The Premier League could face huge legal costs if Manchester City is taken to court
The costs have now risen into the tens of millions and will continue to rise.
Should City emerge victorious, it is difficult to imagine a situation where they would demand the full cost of the competition, given the history between the two. Funds would come from the Premier League’s coffers, hitting the clubs in the pocket.
Everton claimed the top division’s fees were “inexplicably and unaccountably” and “grossly excessive”, pointing out that the hourly rate of £940 was almost double the £550 charged by Pinsent Masons, who represented the club. They also pointed out that the Premier League’s witness statements cost £148,668 each, compared to Everton’s £26,637.
The judgment stated that their decision did not constitute ‘criticism of the PL or its lawyers’. It also stated that it is common in commercial litigation in the High Court for one party to spend more money on its case than can be recovered from the other party.
The Premier League was left with a bill of more than £3m after the PSR v Everton fight
The development is a further blow to the league after Leicester City avoided points being deducted for alleged breaches of the PSR. The Foxes appealed, claiming they had already been relegated when they were charged and that the Premier League subsequently had no jurisdiction. In a decision that has left many wondering, an appeals panel ruled in the club’s favour.
The Premier League said it was “surprised and disappointed” by the ruling. Mail Sport understands it is now considering next steps and wants to tighten the rules.