What Liverpool could do if Man City are found guilty of 115 charges - finance expert

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The rivalry Liverpool have shared with Manchester City in recent years has been one of the defining features of the current Premier League era – but the ‘115 charges’ case could cast it in a new light.

Man City, who completely deny the allegations and insist there is an irrefutable body of evidence to support their claim, are accused of breaching Premier League financial rules between 2009 and 2018.

The natured of the alleged offences range in nature from disguising payments via parallel contracts to players and staff to giving failing to provide accurate accounts and exceeding PSR.

The hearing is currently taking place at the International Dispute Resolution Centre in London and could have implications not just for City but for the existing structures of English and European football.

In what is widely seen as a direct counterattack, Man City recently successfully challenged the Premier League’s APT (Associated Party Transaction) rules in the arbitration courts.

Liverpool were among the clubs to give evidence against City in the case, which ruled on the legality of the league’s powers to temper clubs’ abilities to strike commercial deals with owner-linked parties.

That was symptomatic of just how strained relations are between Liverpool, City and the rest of their peers in the so-called Big Six, who have split into two broad, warring factions.

Now, the news that Liverpool, Spurs, Manchester United and Arsenal have reserved the right to seek compensation if City are found guilty will only fan the flames at Premier League HQ.

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Man City vs the Premier League: How much could Liverpool be owed in compensation?

Because of restrictions relating to the statute of limitations, Liverpool and the other clubs have pre-emptively lodged their intent to appeal for damages if City are found guilty.

They would be entitled to under Premier League Rule W.51.5, which reads: 'The Commission may order the Respondent to pay compensation unlimited in amount to any Person or to any Club.'

In the timeframe of the alleged offences, Liverpool finished runners-up to City in the Premier League in 2013-14 and missed out on either a Champions League or Europa League place a handful of times.

How much might they theoretically be owed in prize money or, potentially, lost commercial income and other considerations?

“The more established clubs could be looking for the difference between Champions League and Europa League,” said Kieran Maguire, an industry insider and football finance lecturer at Liverpool University.

“Winning the Champions League is worth in excess of £100m,”

“If you finish 5th and miss out and Man City are in the top four, this could have a financial consequence. Whether that can be proven is unknown.“

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Could Liverpool cut a deal with Man City over 115 charges case?

Recent years have taught us that the Premier League’s arbitration system moves at glacial speed.

That is not unusual, with reems and reems of documentation, evidence statements and other factors to consider before an independent commission is able to make a decision.

In legal circles, it is not uncommon for two parties to settle out of court or, in this case, arbitration.

“There have been some out-of-court settlements between clubs that have breached PSR and those who haven’t, but we don’t necessarily find out how big the settlement is,” says Maguire.

“If it does go to arbitration between clubs, it will be a long, drawn-out and very expensive exercise for both parties.

“Mediation is normally a far quicker and cheaper alternative to litigation.”

So it looks like the two clubs who currently sit atop the Premier League table are to cut a deal, it will likely be some time before FSG see any material benefit.