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SBD Global/April 30, 2013/Finance

Judge Orders Blackburn To Pay Henning Berg $3.5M For Unfair Dismissal

Henning Berg poses next to the club badge after being named Blackburn manager in November.
League Championship club Blackburn Rovers have been ordered to pay £2.25M ($3.5M) to former Manager Henning Berg "after he won a claim against the club at court," according to James Riach of the London GUARDIAN. Berg was sacked in December after just 57 days in charge, but "will now be paid for the remaining two-and-a-half-years of his contract." Blackburn admitted during last week's Manchester court proceedings the club is "out of control," and has sacked three managers this season. A request to appeal the decision "was dismissed by the judge" on Monday (GUARDIAN, 4/29). In London, Mark Ogden reported Berg "was not in court to hear Judge Mark Pelling dismiss attempts" by Blackburn's owners, Venky's, to avoid paying Berg for the remainder of his contract. Venky's lawyers had argued that Blackburn Managing Dir Derek Shaw "did not have the authority to sanction the compensation terms agreed with Berg as part of his contract" (TELEGRAPH, 4/29).

MAKING MONEY: REUTERS' Mike Collett reported Blackburn's behavior and business dealings "were ridiculed by the judge," who added that it should pay Berg £20,000 ($31,000) in interim costs. Attempts by Blackburn's legal team to lodge an appeal were refused by the judge as "unrealistic," but Venky's has "the option of pursuing the matter at the Court of Appeal" (REUTERS, 4/29). In London, Ian Herbert reported Blackburn had "initially agreed that they would pay Berg the contract in full but then changed their minds." The hearing "was their attempt to get their initial agreement withdrawn" (INDEPENDENT, 4/29). EUROSPORT reported Berg "will have effectively earnt" £38,596 ($58,000) per day for 57 days, £183,333 ($283,400) for every spot he dropped them down the Championship table (12, from fifth to 17th), £275,000 ($426,000) for each goal worse he made their goal difference (eight, from +5 to -3) and £220,000 ($341,000) per match (EUROSPORT, 4/29).
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