Keegan wins €2.18m compensation

Kevin Keegan has been awarded €2.18 million in damages after winning his case against Newcastle for constructive dismissal.

The independent arbitration panel arranged by the Premier League found in Keegan's favour following his departure from the club in September last year.

Although Newcastle owner Mike Ashley has lost the case, he may still be relieved after it was confirmed that Keegan had actually tried to claim damages in excess of €27 million.

Keegan 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 transfer window against his wishes.

He claimed €9.3m 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, and a further €17.9m in "stigma damages" in compensation for the effect of the saga on his future earning capacity.

Since Keegan departed, the club has been relegated from the English Premier League and now play in the tier two Championship.

Keegan released a statement through the League Managers' Association, and repeated his claim made during the hearing that he had been asked to approve the signing of Gonzalez, who he had been told to look up on You Tube, 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 before and I was asked to sign him on the basis of some clips on You Tube.

"This is something that I was not prepared to be associated with in any way."

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.

Newcastle insisted at the hearing that Keegan always knew the club intended to employ a "continental model" with a director of football overseeing recruitment.

Keegan added: "The decision to resign was one of the most difficult decisions that I have ever had to take in my life.

"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."