On Monday Sheffield United began its case against West Ham United in what is thought to be the first damages claim of its kind at the highest level of the sport in England.

The Yorkshire club believe that they were relegated from the top flight at the end of the 2006-07 season as a result of West Ham's admitted breach of Premier League rules in the transfer of Carlos Tevez from Corinthians, the Brazilian club, two years ago.

The Argentina forward helped to rescue West Ham from the drop as they ended the campaign three points above Sheffield United. Tevez subsequently moved to Manchester United.

Sheffield United are seeking compensation after estimating that relegation to the Coca-Cola Championship cost them £30 million. West Ham are convinced that the claim has no merit.

The hearing in London is expected to last several days and the panel is likely to take a couple of weeks before announcing a judgment. It has the authority to award any penalty, including compensation.

The case will have significant ramifications and could open the floodgates for similar legal proceedings between clubs, if United win their claim, reports The Times.