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Magpies must pay Keegan costs

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21 Oct 2009 12:04:40

Magpies must pay Keegan costs

Newcastle have been ordered to pay all of Kevin Keegan's costs in his constructive dismissal claim against the club. The ex-Magpies boss was awarded compensation by an arbitration tribunal earlier this month in regards to his shock departure from St James' Park in September 2008. Keegan revealed that his position had become untenable after the club signed Uruguayan midfielder Ignacio Gonzalez against his wishes. He was awarded £2million as a result, while his costs for fighting the case - which could reach £1.5million - will now also be paid off by his former employers. Newcastle had claimed that Keegan had breached his contract by walking out in dramatic circumstances, but the tribunal sided in favour of the disgruntled coach. They said that the Magpies had made 'entirely unfounded allegations' against Keegan and rejected claims that the club should not be liable for costs because they had offered to settle the case prior to the hearing. A statement from the tribunal said: "We direct that the club should pay all of Mr Keegan's costs. "Moreover, we reject the club's attempt to rely on the various offers which it made both prior to and during the hearing to settle the claim since none of them involved the club's acceptance that he had been constructively dismissed and all of them involved a condition of secrecy or confidentiality. "We direct that the club should pay Mr Keegan's costs on an indemnity basis given the manner in which it conducted this litigation: its defence on the primary liability issue was, in our view, wholly without merit and it chose to make entirely unfounded allegations against Mr Keegan." The tribunal said if the parties cannot agree on costs then they would determine the figure.


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