Source: Telegraph
Newcastle United close to settlement with former manager Kevin Keegan
The two parties have been at loggerheads since Keegan abruptly left the St James' Park manager's post last September and launched a £9 million claim for constructive dismissal. [LNB]Keegan claimed he was entitled to a full settlement of the £3 million per year salary that still had three years to run, but Newcastle owner Mike Ashley hit back with a counter-claim that has alleged breach of contract. [LNB] Related ArticlesKinnear's Newcastle job is safe[LNB]Southgate employing feelgood tactics[LNB]Sunderland's Short may lose invisibility[LNB]Newcastle owner Mike Ashley faces Real Mallorca compensation claim[LNB]Newcastle's Mike Ashley urged to part with Dennis Wise[LNB]Alan Shearer: Newcastle under current structure is not appealing[LNB]The Keegan camp have maintained a silence but Newcastle officials have spoken out and suggested a resolution to the conflict is now on the cards with the Geordie icon and in a separate issue with Real Mallorca over the transfer of Jonas Gutierrez last summer. [LNB]Newcastle managing director Derek Llambias, speaking at a supporters' panel meeting at St James's Park, said: "We are hoping to reach two important settlements in the next week or so which potentially could cost the club a lot of money. [LNB]"One of those is the settlement with Kevin Keegan and the other is the fee for Jonas Gutierrez. We are talking about millions of pounds here and, if we have to pay out a vast sum of money, that will hit our revenue elsewhere. [LNB]"Mike has had to put £10 million of his own money into the club this week to facilitate the running of the club, that includes £4.5 million for Kevin Nolan, as fees for Shay Given and Charles N'Zogbia will not be received until the summer. And he will continue to put his own money in. [LNB]"He is willing to put £10-15 million of his own money in every year, but the rest of the money, for transfers and so on, has to be generated by the club 's own business activity. [LNB]"We don't have any commercial income at the moment because that was spent to pay for Michael Owen. It was all spent in advance, that's the money from Northern Rock and adidas. That is crazy for any football club because we need that income."[LNB]Keegan, 57, has claimed for compensation for constructive dismissal because of the club's transfer policy which, it has been alleged, meant he did not enjoy full control over personnel despite assurances to the contrary. [LNB]Their dispute was set to be resolved by a Premier League arbitration panel but suggestions that one was due to be convened early next month have been played down. [LNB]"History suggests these matters are dealt with before tribunal as they can be painful for both sides but it could go all the way," a Toon insider said. [LNB]Newcastle was brought to its knees by Keegan's exit last autumn and a fierce fans' backlash forced sports retail tycoon Ashley to put the club up for sale. The credit crunch undermined his plans and he took the club off the market at the end of December.[LNB]Meanwhile, former Newcastle forward Faustino Asprilla wants Keegan to take part in his testimonial match to be staged in Colombia on July 4. [LNB]"I want Kevin to be there," Asprilla said. "I came here to play for them and for Kevin Keegan, he was a great man to play for. [LNB]"Everybody liked him because he was a great manager and friend. He did everything he could to take the team to the top. We had very good players and it was very much a dream team."[LNB]
