Liverpool are reportedly among four Premier League clubs that have preserved their right to pursue a potentially substantial compensation claim against Manchester City, according to a report by The Independent.

The report, by Miguel Delaney, states that Liverpool, Arsenal, Manchester United and Tottenham Hotspur are the four clubs understood to have preserved their “right to sue” under Section W of the Premier League rules.

The development could become significant if Manchester City ultimately face sanctions over the long-running Premier League case involving alleged financial rule breaches.

Liverpool reportedly preserved their legal position

According to Delaney’s report, Arsenal were initially the club to preserve their position, with Tottenham, Manchester United and Liverpool subsequently following.

The significance of the move is that the clubs have reportedly taken steps to ensure that potential claims do not become time-barred.

However, this does not mean that Liverpool have already launched a £200 million lawsuit against Manchester City, nor does it mean the club is guaranteed to receive compensation.

Instead, preserving the right to sue keeps open a potential legal route that could be pursued depending on the eventual outcome of the Premier League case and any subsequent appeals.

Where does the £200m figure come from?

The widely circulated figure of around £200 million relates to the potential overall compensation claims that could be pursued by clubs affected by Manchester City’s alleged breaches.

The potential losses could involve more than just league positions.

If a club can establish that Manchester City’s alleged conduct directly affected its own sporting and financial outcomes, a claim could potentially include lost prize money, European qualification-related revenue and other financial opportunities.

There could also be arguments surrounding what lawyers describe as a “loss of chance” — essentially, whether a club lost a realistic opportunity to achieve a better sporting or financial outcome because of another club’s conduct.

That makes the potential value of any claim difficult to calculate at this stage.

Why Liverpool’s position is particularly interesting

Liverpool supporters will naturally look at seasons in which Manchester City finished above Liverpool and consider what the financial consequences might have been.

One obvious example is the 2013–14 Premier League season, when Liverpool finished second behind Manchester City after one of the closest title races in Premier League history.

Liverpool collected 84 points that season, while City finished on 86.

However, any future compensation claim would not simply involve saying that City finished above Liverpool and therefore Liverpool are automatically owed money.

The club would need to establish the relevant legal and financial connection between Manchester City’s alleged breaches and the losses being claimed.

That could make any eventual compensation process complicated.

The Burnley precedent

There is already a recent Premier League example demonstrating that clubs can potentially pursue compensation when another club’s rule breach has caused identifiable financial damage.

Burnley were awarded £35.1 million in compensation from Everton after an independent commission found that Everton’s financial breach had contributed to Burnley’s relegation.

That case does not mean Liverpool will automatically receive compensation from Manchester City. The circumstances and legal arguments are different.

However, it demonstrates why clubs may want to preserve their rights when they believe another club’s alleged rule breaches could have affected their own sporting or financial interests.

Nothing is guaranteed for Liverpool

It is important not to interpret the reports as confirmation that Liverpool will receive a huge payout.

There are several stages that would potentially have to take place before any compensation could be awarded.

First, the underlying Manchester City case would need to reach a final position, including the relevant appeals process.

After that, clubs seeking compensation would potentially have to establish that they suffered identifiable losses and demonstrate the necessary connection between those losses and the conduct in question.

The amount of compensation, if any, would then have to be determined through the appropriate legal or arbitration process.

Therefore, the £200 million figure should be viewed as a potential aggregate value rather than a guaranteed payment to Liverpool or any other individual club.

What happens next?

For now, Liverpool’s reported decision to preserve their position simply means that the club has kept the door open.

Manchester City’s Premier League case remains the central issue. The eventual outcome could determine whether the clubs that have preserved their rights have a viable basis for pursuing compensation.

For Liverpool, the situation is therefore one to monitor rather than an immediate financial windfall.

The fact that Liverpool are reportedly one of only four clubs to have preserved their “right to sue” is nevertheless notable.

If Manchester City’s alleged breaches ultimately result in findings that materially affected the competitive and financial positions of other clubs, the consequences could extend well beyond sporting sanctions.

It could potentially open another major chapter in the long-running dispute — this time involving financial claims from rival Premier League clubs.

For Liverpool supporters, the key point is straightforward: Liverpool have reportedly protected their legal position, but any compensation claim remains conditional and would have to be established through a future legal or arbitration process.