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Newcastle United 'in breach of contract' over Keegan

A court of arbitration has found that Newcastle United were in breach of contract relating to former manager Kevin Keegan’s discharge, which could cost the club up to £1.5 million, BBC reports.

The verdict of ‘constructive dismissal’ was reached earlier this month. Newcastle, now up for sale, claim that they were not liable for Keegan’s expenses because they attempted to settle the case before the hearing.

In a statement released by the court, the legal body stated that the club made ‘entirely unfounded allegations against Mr Keegan,’ during the proceedings. The court also rejected the club’s defence as the settlement offers did not acknowledge Keegan’s ‘constructive dismissal,’ and that the offers imposed ‘a condition of secrecy or con­fi­den­ti­ali­ty.’

Keegan parted with the club after Newcastle signed player Igancio Gonzalez without his approval.

The court will determine an amount if an agreement cannot be reached. No further damages will be paid to Keegan. The club has made no comment.
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