Liverpool eyeing huge compensation fee in Man City FFP case amid £100m reveal
Man City's FFP case could affect Liverpool
Liverpool are playing the long game and hoping to receive a hefty payout if Manchester City are found guilty of breaking the Premier League’s Financial Fair Play (FFP) rules, a football finance expert has revealed.
The Premier League conducted a lengthy investigation into Man City’s financial reports from 2009 to 2018, resulting in the club being charged with 115 breaches in February 2023. The number of charges has since risen to 130, reflecting the severity of the accusations.
The Premier League allege that Man City provided inaccurate reporting of their finances, such as how much they earned through sponsorship deals. It has even been claimed that they paid a manager extra money via a secret contract for four years.
The Premier League have stated that City failed to co-operate with their investigation. The Cityzens, however, have always denied any wrongdoing.
The hearing took place between September and December last year. The verdict was initially expected to emerge in March, but was then postponed until the summer.
It is now not expected to arrive until the October international break at the earliest.
If City are found guilty, then they could receive a points deduction, fine or transfer ban. Relegation from the Premier League has even been mooted as a possibility.
Other lawsuits could follow. For example, rivals such as Liverpool may request compensation if they feel they missed out on silverware because of City allegedly flouting rules, though all this depends on the initial verdict.
According to The Telegraph, Premier League clubs has amassed over £100million in legal bills since the start of the 2022/23 campaign. It was halfway through that season when City were first charged.
City are the main reason that cost is so high, as they have been battling the league on both the FFP and associated party transaction (APT) fronts, though Everton, Nottingham Forest and Leicester City are also partly to blame.
As per TBR, those legal expenses are borne equally by all 20 top-flight sides.
Liverpool have a self-sustaining business model and therefore such charges could impact them more than other clubs, such as City or Chelsea.
Kieran Maguire, an expert on the City case, thinks Liverpool will happily accept initial legal bills if they lead to significant compensation down the line.
“As far as Liverpool are concerned, the legal bill is the cost of doing business,” he said.
“They see themselves as one of the clubs who will have been significantly disadvantaged should Man City be found guilty.
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“If we take into account the settlement between Everton and Leeds United, that could be significant precedent. But that is if City are found guilty – and that is a big if.
“And although you wouldn’t expect them to say any different, all the noises I am getting from Manchester are very confident.
“If it’s going to cost Liverpool £5m but they could potentially get much more if City are found guilty… They will have effectively worked it out on an insurance basis.
“It might be a short-term pain, long-term gain scenario. But the costs have certainly got out of control. Other costs have gone through the roof too, such as utilities and administration at club level.”
Update on Liverpool exit; City pursuit confirmed
Elsewhere, City failed to land a new right-back over the summer despite Kyle Walker having already left in January.
That is not for the lack of trying though, with Barcelona chief Deco having confirmed an approach from City counterpart Hugo Viana.