An independent arbitration panel has ruled that Newcastle United pay former manager Kevin Keegan over $3 million for Keegan's "constructive dismissal" from the club in September 2008. After promising Keegan control over the club's transfer policy, Newcastle undermined Keegan's contract by handing transfer power to former director of soccer, Dennis Wise.
Keegan states that he ultimately resigned from his post after Newcastle decided to sign one player, Ignacio Gonzalez, against his wishes and without any legitimate scouting. "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," Keegan said today. "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. 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."
Keegan said that his decision to resign from Newcastle was a tough one but that he felt he had no choice. "I believe that anybody who knows me and my attachment to Newcastle United and the northeast in general will understand how difficult this must have been. I very much hope that the decision of the tribunal now confirms why I felt that I had no option but to resign from the position as manager of the club that I love."