The eyes of the football world were on Teesside last night, awaiting the result of an historic bid by Middlesbrough FC to sue for £7m damages over a player transfer.

The club is expected to hear today whether its claim against Liverpool - the first of its kind - for the sale of Christian Ziege will be heard by the High Court in a case which has huge financial implications for the sport.

Liverpool and Ziege were both found guilty earlier this year of breaking FA Premier League rules aimed at preventing poaching of under-contract players.

Experts say that if Boro proceed successfully with the huge damages claim, it could open the floodgates for other clubs to go to court in a bid to settle transfer wrangles.

Liverpool were fined £20,000 and the player £10,000 after a Premier League inquiry into German international Ziege's £5.5m sale in August 2000.

But Boro argued that the punishment did not fit the crime and are now seeking further compensation to match the player's true worth.

Both clubs have been engaged in a bitter war of words with Boro chairman Steve Gibson accusing Liverpool of "lies and deceit".

Last night, Vinay Bedi, a football finance analyst with Wise Speke, of Newcastle, said he believed Boro were perfectly entitled to seek recompense. He said: "In this case, the player's contract effectively meant nothing.

"The implications for football are very bad in terms of encouraging people to invest in the game if an asset like a player cannot be protected.

"I am sure other clubs, if they have evidence of wrong-doing in a transfer, will be considering the same course of action depending on the outcome of the case."

Football agent Hayden Evans, who represents Newcastle star Gary Speed, said: "Disputes like this have always been settled by the internal football bodies and most people have abided by the results. It is brave of Middlesbrough to take a stance like this if they believe they are in the right.

"There is a growing need in football to look at the bottom line. Clubs are under pressure to watch the pennies, so they will look at any opportunities to earn recompense and right wrongs.

"A lot of clubs will be watching Middlesbrough's situation closely."

The High Court was yesterday hearing an appeal by Liverpool to have the case thrown out.

David Phillips QC, representing Middlesbrough, told Mr Justice Astill that Liverpool had exploited confidential knowledge of Ziege's contract, which was in its first year of five.

A get-out clause allowed transfer negotiations to go ahead if a minimum figure of £5.5m was offered.

He said Ziege's transfer value was £7.5m, based on approaches from other clubs.

That could have increased had he stayed because the club would have been more successful in the league had he been present.

Last night, both clubs were not openly commenting on the claim, although Boro sources said they were "very confident" the case will proceed successfully.

Read more about Middlesbrough here.