Kevin Keegan has been awarded £2-million in damages after winning his case against Newcastle for constructive dismissal.
The independent arbitration panel arranged by the Premier League found in Keegan’s favour following his departure from the club in September last year.
Announcing its decision, the panel said in a statement: ”We declare that Kevin Keegan was constructively dismissed by Newcastle United Football Club, for which Newcastle United Football Club must pay to Kevin Keegan damages in the sum of £2-million plus interest to be assessed if not agreed.”
Although Newcastle owner Mike Ashley has lost the case, he may still be relieved after it was confirmed that Keegan had actually tried to claim damages in excess of £25-million.
Keegan resigned in protest at the club’s transfer policy when Uruguayan midfielder Ignacio Gonzalez was brought to the club on the final day of the summer transfer window against his wishes.
He claimed £8,6-million in salary and other benefits to which he would have been entitled had he seen out the remaining years of his contract, which was due to expire in June 2011, and a further £16,5-million in ”stigma damages” in compensation for the effect of the saga on his future earning capacity.
Since Keegan departed Newcastle, the club has been relegated from the English Premier League and now plays in the tier two Championship.
Keegan released a statement through the League Managers’ Association, who have represented him throughout the case, and repeated his claim made during the hearing that he had been asked to approve the signing of Gonzalez, who he had been told to look up on YouTube, to foster a relationship with two South American agents.
Keegan said: ”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.
”No one at the club had seen this player play and I was asked to sign him on the basis of some clips on YouTube.
”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.”
Gonzalez ultimately played just 38 minutes of football in two appearances as a substitute for the club during his loan spell at St James’ Park.
Newcastle insisted at the hearing that Keegan, who had replaced Sam Allardyce to launch his second spell as manager, always knew the club intended to employ a ”continental model” with a director of football — Dennis Wise was later appointed executive director (football) — overseeing recruitment.
Keegan added in his statement: ”The decision to resign was one of the most difficult decisions that I have ever had to take in my life.
”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.
”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.
”The club admitted to the tribunal that it repeatedly and intentionally misled the press, public and the fans of Newcastle United.
”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.” — AFP
