The Premier League could be hit with a legal bill of tens of millions for their case with Manchester City – even if they win it.
In a move that has triggered major concerns among some of its clubs the top flight has been ordered to pick up the majority of the tab for their wrangle with Everton last year. Officials had attempted to force the Toffees to settle the £4.9m bill for the Profit and Sustainability case which saw the Merseyside club deducted 10 points, which were reduced to six on appeal.
However, a commission and appeal board ruled Everton liable for around a third of the fee at £1.7m, with the top flight covering the remaining £3.2m.
The Premier League and City face off behind closed-doors later this month in the much-anticipated hearing into 115 alleged breaches of financial rules by the champions. City have assembled an elite legal team featuring some of the continent’s top legal minds including Lord Pannick KC, viewed as the highest-profile barrister in Britain. Pannick, who represented City when they overturned UEFA’s Champions League ban, is reported to charge around £5,000 per hour.
On the Premier League’s side Adam Lewis KC, from the same Blackstone Chambers as Pannick, has been enlisted, along with top law firm Bird and Bird.
The Premier League could be left with huge legal costs for taking Manchester City to court
Eyewatering costs are already understood to have entered the territory of tens of millions and will continue to rise.
Should City emerge triumphant, it is difficult to imagine a situation where they would seek full costs from the competition, given the history between the two. Funds would come from Premier League coffers, hitting its clubs in the pocket.
Everton claimed that the top flight’s costs were ‘unexplained and inexplicable’ and ‘grossly excessive’, pointing out the hourly rate of £940 was close to twice the £550 charged by Pinsent Masons, who were representing the club. They also highlighted the Premier League’s witness statements cost £148,668 each, compared with Everton’s £26,637.
The judgement stated that their decision was not ‘a criticism of the PL or its lawyers’, adding that in High Court commercial litigation it is commonplace for one party to spend more on its case than can be recovered from the other side.
The Premier League had to pick up a bill of more than £3m after its PSR tussle with Everton
The development is a further blow for the competition after Leicester City secured avoidance of a points deduction for alleged breaches of PSR. The Foxes launched an appeal claiming they had already been relegated by the time they were charged and claiming the Premier League subsequently had no jurisdiction. In a ruling which has left many scratching their heads, an appeal board found 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 a move to tighten the rules.
