It looks like Kevin Keegan is holding out for a full payment of his claim against the Newcastle United Football Club.
Kevin Keegan – taking the club he loves to the cleaners
Sources close to Ashley say the former Newcastle manager has rejected an offer of £4M from the Newcastle club, to resolve their differences and is holding out for a full £10M settlement.
Any pay-off would impact the Tyneside club’s finances, at a time when they are trying to get their finances in order, so the club can be sold to Barry Moat.
Any large payout the Newcastle club have to make could well impact the sale of the club, and a decision by the tribunal looking into the case, is expected by the end of the week.
If Keegan wins his case in full, it means his contract, which initially ran for 3.5 years from a year last January, will be paid in full by the club (£9M), and he will also be awarded costs for the case, estimated at around £1M.
That could come out close to £10M when everything is added up.
And that’s an awful lot to pay for a now Championship club to one man, when you consider Barry Moat can only get a £10M overdraft from Barclays Bank right now, if he manages to buy the Newcastle club.
£10M is Barclays limit for Championship clubs, and its around £39M for Premier league clubs we understand.
A judgement against Newcastle could therefore be a serious financial burden, at an unfortunate time.
The only hope the Newcastle club have, if they lose the case, is to try to negotiate the payout over a number of years, to lessen the immediate impact.
It will mean Keegan will be paid a full salary of £3M/year through the summer of 20111, even though he left the club over a year ago, and worked for only 8 months at the club, the second time around.
Isn’t that just a great way to make a living, since he’s now working as a pundit for ESPN.
No wonder we can only afford loan players this season.
The case is being heard in private and its resolution had been hoped to clear one of the obstacles in the way of Ashley selling the Championship club, but the club’s expectation was that Keegan would certainly not win his case outright.
A source close to the Newcastle club said:
“Newcastle remain unsure how it will pan out but Keegan is certainly confident that he will get his way and all the cash he wants,”
“If he gets a massive pay-off that could really have an effect on the rest of the club.
“Any money would come out of the club and not Ashley’s pockets, making it a very dangerous situation for Newcastle.”
But hey, we have to be thankful for small mercies – we’d hate to think what Keegan would be after if he didn’t love the club!