Manchester City and Chelsea boosted by lawyer’s compensation claims verdict
Any football clubs seeking to bring compensation claims in the wake of Burnley’s landmark £40m award will face significant hurdles, a former Premier League lawyer has warned.
The decision by an independent disciplinary commission earlier this month to order Everton to pay an eight-figure sum to Burnley has been tipped to trigger a landslide of similar claims.
Those could, in theory, involve Manchester City, if found guilty of more than 100 charges brought by the Premier League, or Chelsea, who admitted making undisclosed payments.
Burnley successfully argued that Everton’s breach of spending rules in the 2021-22 season denied them a fair chance of avoiding relegation to the Championship that year. Everton have appealed.
Akshay Sewlikar, a partner at Michelman Robinson, acted for the Premier League in its initial prosecution of Everton for the rule breaches but has sounded a note of caution.
“While the Burnley v Everton case is notable because it permits a substantial ‘loss of chance’ claim, there are still a number of significant procedural and substantive hurdles before any wider conclusions can be drawn,” he told Morning Wire.
“First, there is an appeal to be heard. In addition, depending on the position adopted by the parties, the matter may proceed to a section X arbitration under the Premier League Rules. Only if those processes ultimately conclude in Burnley’s favour will the focus shift meaningfully to whether other clubs might seek to bring analogous claims – for example, one cannot rule out the possibility that the appeal board rejects the loss of chance arguments in such cases.”
Burnley award could affect Premier League and EFL
Burnley engaged independent data expert Will Daniels and Professor Rob Wilson from the University Campus of Football Business to build their case that Everton’s overspending gave them a sporting advantage and contributed to the Clarets’ relegation.
Any clubs bringing similar claims to Burnley would need to establish causation and quantify any alleged loss, which “may be considerably more complex in some scenarios”, added Sewlikar.
“Loss of chance claims are inherently fact-sensitive and often involve difficult evidential questions. Even where a breach is established, a tribunal must assess the hypothetical counterfactual scenario and determine what would probably have happened absent the wrongdoing. That is rarely straightforward in a sporting context involving multiple competitors and a range of variables which affect outcomes.
“The Burnley decision could result in more potential claims by clubs, and not just in the Premier League – one can see this playing out in the EFL as well. However, legal and evidential challenges involved remain substantial. Each case will ultimately turn on its own facts.”