Newcastle Forced To Pay Kevin Keegan Over 2 Million Pound

Filed under: Money, Newcastle

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Although he was initially looking for around 25 Million Pound, Kevin Keegan is set for 2 Million Pound plus interest after an independent arbitration panel awarded the former Newcastle Manager compensation over his controversial dismissal that must be paid within the next seven days.

Via Guardian 

Keegan, though, is likely to be disappointed after lodging a claim that amounted to £25m, comprising £8.6m for the remainder of his contract and a further £16.5m for “stigma damages” on the basis, he said, that he “has found it and will continue to find it difficult, if not impossible, to obtain work again as a top-flight manager”.

Mike Ashley, Newcastle’s owner, had counter-claimed for breach of contract to the tune of £2m but the panel decided that removing control of transfer policy from his remit and handing it to the club’s former director of football, Dennis Wise, amounted to constructive dismissal.

The decision comes a week after the conclusion of a fortnight-long arbitration panel hearing. The case was heard by Philip Havers QC – who acted as chairman – Lord Pannick QC and Manchester United’s assistant secretary, Kenneth Merrett.

Newcastle’s decision to sign Ignacio González, against Keegan’s wishes, prompted him to quit. “I resigned because I was being asked to sanction the signing of a player in order to ‘do a favour’ for two South American agents,” Keegan said today. “No one at the club had seen this player play and I was asked to sign him on the basis of some clips on You Tube.

“This is something that I was not prepared to be associated with in any way. The club knew that I objected strongly to this transfer and were aware that by continuing with it I was likely to feel that I had no option but to resign. Notwithstanding this they nevertheless went on to sign the player at very substantial cost to the club.

“Contrary to the public statements made by the club at the time they did not do all that they could to retain me at the club. In particular they refused to acknowledge that I was entitled to the final say on transfers. This left me in a totally untenable position.”

He described himself as “delighted” by the tribunal’s ruling. “The tribunal has found the conduct of the club in forcing a player on me against my wishes represented a fundamental breach of my contract of employment. I do not believe that there is any manager in football who could have remained at the club in the light of their conduct.”

He added: “I took the decision to resign in September 2008 only after very careful and anxious consideration. The decision to resign was one of the most difficult that I have ever had to take in my life.

“I believe that anybody who knows me and my attachment to Newcastle United and the north-east in general will understand how difficult this must have been. I very much hope that the decision of the tribunal now confirms why I felt that I had no option but to resign from the position as manager of the club that I love.”

Newcastle responded to the verdict by saying that “the club will be making no comment on this matter”.

Image via Telegraph 

Added on Friday, October 2nd, 2009 by

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