Kevin Keegan has won a £2m compensation claim for constructive dismissal from Newcastle United.
Kevin Keegan left Newcastle United after his second spell as manager
Newcastle were ordered to pay their former manager £2m in damages after he won his case.
The independent arbitration panel found in Keegan's favour following his departure from the club in September last year.
The panel, convened by the Premier League, announced its decision in a statement.
It said: "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 £2million plus interest to be assessed if not agreed."
The Championship club were ordered to pay their former manager £2m in damages after he won his case.
An independent arbitration panel found in Keegan's favour following his departure from the club in September last year.
The panel, convened by the Premier League, announced its decision in a statement.
It said: "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 £2m plus interest to be assessed if not agreed."
Despite losing the case, the level of damages will come as a relief to club owner Mike Ashley after it was confirmed that Keegan was claiming in excess of £25m.
He 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.
Keegan claimed £8.6m 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.
He also sought a further £16.5m in "stigma damages" in compensation for the effect of the saga on his future earning capacity.
The club declined to comment on the decision but Keegan released a statement through the League Managers' Association, who have represented him throughout the case.
In it, he repeated his claim made during the hearing that he had been asked to approve the signing of Gonzalez.
Keegan said he had been told to research the player on YouTube and 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."
Keegan continued: "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.
Source: Sky News
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Kevin Keegan left Newcastle United after his second spell as manager
Newcastle were ordered to pay their former manager £2m in damages after he won his case.
The independent arbitration panel found in Keegan's favour following his departure from the club in September last year.
The panel, convened by the Premier League, announced its decision in a statement.
It said: "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 £2million plus interest to be assessed if not agreed."
The Championship club were ordered to pay their former manager £2m in damages after he won his case.
An independent arbitration panel found in Keegan's favour following his departure from the club in September last year.
The panel, convened by the Premier League, announced its decision in a statement.
It said: "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 £2m plus interest to be assessed if not agreed."
Despite losing the case, the level of damages will come as a relief to club owner Mike Ashley after it was confirmed that Keegan was claiming in excess of £25m.
He 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.
Keegan claimed £8.6m 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.
He also sought a further £16.5m in "stigma damages" in compensation for the effect of the saga on his future earning capacity.
The club declined to comment on the decision but Keegan released a statement through the League Managers' Association, who have represented him throughout the case.
In it, he repeated his claim made during the hearing that he had been asked to approve the signing of Gonzalez.
Keegan said he had been told to research the player on YouTube and 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."
Keegan continued: "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.
Source: Sky News
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