Manchester City’s legal problems could potentially spread from the boardroom to the dressing room, with leading barrister Paul Gilroy KC suggesting that some players may have grounds to challenge their contracts following the club’s guilty verdict over serious financial breaches.
City were found guilty by an independent commission of all charges relating to serious breaches of Premier League financial rules and the majority of charges concerning failures to co-operate with the investigation.
No sporting sanction has yet been imposed, and the club has confirmed it intends to appeal.
Man City players could argue trust has been broken
Gilroy discussed the potential consequences on the Stick to Football podcast.
He explained that employment contracts contain an implied duty of trust and confidence between employer and employee. In theory, a player could argue that City’s conduct represents such a serious breach of that relationship that they are entitled to terminate their agreement.
Gilroy said: “A player could say, ‘You’ve breached the implied term of trust and confidence’.”
He added: “And they could say, ‘You are my employer, you have acted in breach of that term and that entitles me to say I’m ripping up my contract and I’m walking out’.”
Importantly, Gilroy also stressed that this remains only a possibility and would depend heavily on the specific circumstances.
Contract uncertainty could become major issue
This is where the situation becomes particularly interesting for City.
The club currently has some of world football’s most valuable players tied to long-term contracts, and there is no suggestion that any of them have yet attempted to terminate their deals.
Reports have also indicated that leading players such as Erling Haaland do not have automatic relegation release clauses.
However, the legal landscape could become more complicated if the guilty verdict survives the appeal process and severe sanctions follow.
As per Reuters, no punishment has yet been imposed and the appeals process could be lengthy, potentially prolonging uncertainty around the club.
For Man City, that uncertainty may be almost as important as the eventual sanction. Players, agents and sponsors will all want clarity, particularly if Champions League participation or even Premier League status becomes uncertain.
For now, talk of stars walking away for nothing remains theoretical. But if City ultimately fail to overturn the findings, the consequences could extend well beyond points deductions or fines.
No 10 backtrack on Andy Burnham’s controversial Manchester City comments