SOCCER: Record Premier League fines for Chelsea, their manager Jose Mourinho and Arsenal's Ashley Cole last night threw the doors open to a rash of litigation between two of England's leading clubs.

Cole, the English champions Chelsea and their manager Jose Mourinho were last night out of pocket to the collective tune of £600,000 after record fines were handed down at the conclusion of the Premier League's "tapping up" inquiry.

Chelsea were fined £300,000 and given a suspended three-point deduction for their breach of the league's rule regarding approaches from clubs towards contracted players.

Mourinho was fined £200,000 for breaking the managers' code of conduct and Cole received a £100,000 penalty under the rule which prevents contracted players from talking to other Premiership clubs. Cole had held an illicit meeting with representatives of Chelsea, including Mourinho and the chief executive Peter Kenyon, at London's Royal Park Hotel in January.

The sanctions were handed down yesterday by a commission set up by the Premier League headed by the former law lord Sir Phillip Otton.

The incident has driven a wedge between two of the country's biggest clubs. When asked if the relationship between them could be repaired, Chelsea's chairman, Bruce Buck, replied: "Anything is possible" before accusing Arsenal of having "an agenda" in their complaint, which set in motion the chain of events that led to yesterday's verdicts.

All parties have indicated that they will appeal.

Arsenal's vice-chairman David Dein did not rule out the possibility of seeking damages from Chelsea following yesterday's verdict and Chelsea may launch a civil court battle against the FA Cup holders after reacting angrily to the decision.

On the steps of London's Marble Arch Towers, where yesterday's sentences were handed down, Cole's lawyers stated his intention to lodge an "immediate" appeal. He will pursue the case to the Court of Arbitration for Sport in Lausanne, and beyond to the civil courts if unsuccessful.

Mourinho is said to have been incensed by the decision.

The conduct of the two agents involved, Cole's representative Jonathan Barnett and the Israeli Pini Zahavi, who works on behalf of Chelsea, is set to be investigated by the FA after the commission singled their conduct out for particular criticism.

Chelsea insist they are not guilty of what their chairman Bruce Buck said had been described by the Premier League as "going over the line". Buck described the sanctions as "totally disproportionate" and said they will "almost certainly" appeal before looking to take the matter to court. "That's something we have to look at and consider," he said. "It will take some time to consider all the possibilities."

He added he was generally satisfied with the rules as they stand but feels they could be tweaked. Buck wants the rules changed so a player in the last year of his contract can talk to other clubs without his employer's permission. "We're very disappointed," he said of the verdict. "Chelsea football club had been approached by two agents on behalf of Ashley Cole. They then came to the conclusion the fact we went to a meeting constituted an approach. We disagree with that completely."

His opinion is that Chelsea did not actually approach Cole. "Our view is and the rule is that it breaks the rules if you make an approach with the intent of entering into a contract with that player. We had no intent."

Buck was particularly unhappy with the Premier League's punishment for Mourinho. "He was not at all an active participant or protagonist," he said.

Buck intimated Arsenal's relationship with Cole is now at breaking point. "I don't know if you saw Ashley Cole but he looked a very unhappy boy," he said. "I'm surprised because this clearly can't be helpful to the relationship between Ashley Cole and Arsenal."

That was a point corroborated last night by sources close to the player. Nonetheless, Arsenal will attempt to repair their relationship with the England international. "We hope Ashley does not leave," said Dein. "We do not want him to leave and we will be trying to extend his contract. We did not want to see him punished and I certainly did not testify against him. We all make mistakes but we move on. We want Ashley to be part of our future."

Sources present at the inquiry claim that Dein sought £7 million in damages from the commission's verdict - a reprisal that was thrown out by Otton and his fellow panel members, Malcolm George and David Dent.

Cole will now challenge the Premier League's rule K5 under which he was charged. If the panel's decision is upheld by the Premier League's appeals panel, there will be further actions.

"We found it hard to understand how the decision could have been reached in the light of the evidence," said Cole's lawyer Graham Shear. "The decision also does not deal with the extremely important issue of restraint of trade insofar as footballers are concerned and it doesn't explain why footballers can't speak to prospective future employers.

The Premier League is set to defend its rule. "We consider it unacceptable that a player should approach another club in the Premier League - contrary to Premier League rules and contrary to the expectations of Arsenal, who were entitled to expect loyalty from a player who they have nurtured from boyhood to a glittering football career," said the Premier League's Dan Johnson in a statement.