21 Oct 2009Newcastle United 'must cover Keegan's legal costs'

Football Clubs News | Football Finance News

Newcastle United have been ordered to pay the £1.5 million legal costs resulting from Kevin Keegan's recent compensation case.

The former Magpies manager successfully claimed £2 million for constructive dismissal earlier this month, when an arbitration panel ruled that the club had been in breach of contract prior to Keegan's departure in September 2008.

Owner Mike Ashley launched a counter-claim against the 58-year-old, but the Premier League tribunal has now ruled that the club must pay Keegan's costs after making "entirely unfounded allegations" against him.

"We direct that the club should pay Mr Keegan's costs on an indemnity basis given the manner in which it conducted this litigation," read a statement from the tribunal.

The overall football finance situation remains uncertain at St James' Park, with Ashley recently challenging local businessman Barry Moat to make an £80 million offer for Newcastle United or drop his interest in the club.

Ashley claimed that Moat has been "driving me mad for two years" and said that he would be given a "one-off opportunity" to find the necessary funds for a buyout.

Written by Terry Mitchell

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