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New bonanza for sports lawyers as Real threaten to sue PL clubs

Real Madrid want the six Premier League clubs that signed up to the European Super League (ESL) to pay a share of the initial costs of the abandoned project.

Multiple sources with a close understanding of the situation told The New York Times that the Spanish club believe Arsenal, Chelsea, Liverpool, Manchester City, Manchester United and Tottenham Hotspur should still be liable for the setup costs of the plan, despite subsequently pulling out.

One source said these costs could be as high as €80 million (£67.3m; $89.9m) in total. Madrid, alongside domestic rivals Barcelona and Juventus of Italy, have so far shared promotional costs associated with the ESL, plans for which were announced in April 2021.

Of the 12 founding ESL members, nine — each of the six English clubs, along with Spanish side Atletico Madrid and both Milan and Inter of Serie A — pulled out swiftly in the days following its launch. Another, Juventus, said in 2023 that they had withdrawn from the proposal, before Barcelona did earlier this year

The clubs had, however, signed up to a shareholders’ agreement for the European Super League Company, a holding company based in Spain.

Whether the six Premier League clubs are bound to pay a share of the ESL costs is likely to be determined by the interpretation of the contract’s wording around clubs signing up to “jointly own and manage” the project, and whether that wording encompasses financial obligations.

The legal status of the ESL has been a simmering dispute between its 12 founding clubs ever since nine of them quit the project within days of its launch in April 2021.  For those who left, it was an embarrassing episode but they said sorry and now want to pretend it never happened. But for those who stayed, particularly Real Madrid, who stayed the longest, the ESL is like The Eagles’ Hotel California: you can check out any time you like but you can never leave.

A good lawyer could argue that clause is an open-ended commitment to cough up. But another good lawyer could point out there is no mention of money and the ESL was clearly dead on arrival.

So, if Madrid really want those contributions, they are probably going to have to sue for them. Which is great news for sports lawyers.

 

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