The Premier League has alerted its clubs that it incurred over £45m in legal expenses last season as a result of various disputes regarding its financial regulations.
The £45m figure is detailed in documents sent to clubs ahead of a shareholders’ meeting in London today. However, according to The Times, the league had initially budgeted only around £8m for legal expenses.
While these two figures are significantly different, many Premier League clubs are likely not surprised by the discrepancy. Recently, the league has faced numerous breaches of its Profit and Sustainability Rules (PSR).
Last season, both Everton and Nottingham Forest faced point deductions after being found in violation of the Profit and Sustainability Rules (PSR). The investigations were complex, as Everton successfully appealed to reduce the penalty imposed on the club.
Leicester City, despite competing in the Championship last season, faced disciplinary action as they returned to the Premier League this season. Additionally, Chelsea was another club involved in a case with the league.
Currently, the league is undergoing its most significant investigation to date involving Manchester City, which faces over 100 charges related to alleged breaches of financial rules. This investigation, which has been ongoing for four years, is now in its second week of a hearing. The club denies any wrongdoing and the hearing is anticipated to last around 10 weeks.
At today’s meeting, clubs might be informed about the results of Manchester City’s legal challenge related to the league’s Associated Party Transactions (APTs) rules. These rules oversee commercial agreements between clubs and organisations associated with their owners.
Should the arbitration panel side with Manchester City, prompting a revision of the APT rules, other clubs will be notified. However, it’s unlikely that there will be any official announcement made.
Sources from the BBC have indicated that league officials are likely to justify the rising legal costs, which are funded by central resources, by highlighting the necessity of enforcing rules and the increasing number of recent cases.
Last month, Premier League Chief Executive Richard Masters stated to BBC Sport: “Part of any sporting competition is a commitment to uphold the rules. While it does create difficulties, there is no happy alternative to enforcing rules.
“Profit and Sustainability Rules are now in place and we are starting to see clubs breach, and fans having to experience the uncertainty that creates. We want to move to a new system that people have confidence in and can comply with and move away perhaps from long-running regulatory cases.”
