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Former Newcastle manager Kevin Keegan - Source: Photosport -
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Former England manager Kevin Keegan will receive two million pounds ($4.4 million) in compensation after his former club Newcastle United were found guilty by a tribunal of constructive dismissal.
"We declare that Kevin Keegan was constructively dismissed by Newcastle United Football Club Ltd for which Newcastle United Football Club Ltd must pay to Kevin Keegan damages in the sum of two million plus interest to be assessed if not agreed," the tribunal said in their decision, which was published on the club's website.
The club said it would make no further comment on the matter.
Keegan, who resigned on September 4, 2008, less than eight months after taking charge in his second managerial spell at the club, said Newcastle had breached a term of his contract relating to player transfers.
Keegan said that on August 31 last year the club breached his contractual right to have the final say on transfers by signing Uruguayan Ignacio Gonzalez on loan "expressly against his wishes".
Newcastle denied such terms were agreed and said Director of Football Dennis Wise and Tony Jimenez would be responsible for player recruitment, meaning Keegan's subsequent resignation was not justified.
The tribunal ruled Newcastle did not make it implicit that Keegan would not have the final say on transfers.
In its report, the tribunal said Keegan had been asked by Wise to look at video footage of Gonzalez on the Internet but found the picture quality to be poor and "provided no basis for signing a player to a Premier League club".
"Moreover, no one at the club had ever seen him play. However, notwithstanding that he (Keegan) made it clear not only to Mr Wise but also to Mr Jimenez and to Mr (Mike) Ashley that he very strongly objected to the signing of Mr Gonzalez," the report read.
However, Newcastle proceeded with the transfer for Gonzalez in what the report said was a "commercial deal", prompting Keegan to resign.
"The 'commercial interests', according to the club, were that the signing of the player on loan would be a 'favour' to two influential South American agents who would look favourably on the club in the future," the report said.
Keegan was hailed as the club's saviour when he returned to Newcastle, 11 years after his previous sudden departure, and the end to his second spell in charge shocked many fans.
Newcastle United were relegated to the Championship (second division) last season after 16 years in the top flight.
