Everton precedent could amplify Manchester City’s historic penalty

On Tuesday the Premier League confirmed that Manchester City has been found guilty of more than one hundred financial violations, while an earlier ruling that forced Everton to compensate Burnley may set a precedent that could dramatically increase City’s potential loss.

City’s financial breaches

The infractions span 2009 to 2018 and include artificially inflated sponsorship contracts worth over £830 million supplied by the club’s owners and the Abu Dhabi government, as well as off‑contract salary payments to players and staff. The club also failed to cooperate with the league’s investigation.

Richard Masters said, "Este processo disciplinar e esta decisão são os mais significativos da história da liga," underscoring the unprecedented nature of the case. The league has yet to confirm any sporting sanctions such as relegation or title stripping.

Everton‑Burnley compensation case

In June, an independent Premier League commission ordered Everton to pay the largest fine in league history after Burnley argued the Toffees’ breaches had cost them dearly following their 2021/22 relegation.

Everton exceeded the permitted spending limit by £19 million across three seasons (2019‑2022) and were initially docked ten points, later reduced to six after appeal, in the 2022/23 season – the campaign immediately after Burnley’s drop. Burnley finished four points behind Everton and calculated that the breach gave the Toffees between 3.85 and 7.13 points.

Premier League finds Manchester City guilty of infractions

The compensation awarded was £26 million plus £9 million in interest, under a rule that allows clubs to seek redress from those found guilty of rule breaches. Everton has appealed, describing the precedent as “dangerous and unworkable for English football.”

Potential ripple effect on the league

If the panel upholds the Everton decision, other clubs could pursue similar claims against Manchester City. The Times Liverpool, Manchester United, Arsenal and Tottenham have already notified City that they would each seek £100 million in damages should the rival be convicted.

Manchester City, owned by the Abu Dhabi government, used the alleged financial advantages to sign more players, offer higher wages and achieve three league titles, three League Cups and eight Champions League appearances between 2009 and 2018.

Premier League reveals Manchester City hid billions in costs

Burnley’s relegation is estimated to have cost £35 million, raising questions about how much could be claimed if multiple clubs that fell behind City during that period decide to sue.