The House of Lords has rejected Town boss Joe Royle's application to appeal against the ruling in his dispute with Manchester City over the compensation due to him after his sacking as manager at Maine Road. Royle initially won the case but the Appeal Court overturned that verdict.

The Town manager claimed that when he left Maine Road in May 2001 his golden handshake should have been at an agreed Premiership level of £750,000 rather than the lower Division One sum which he was actually paid.

Lawyers representing Royle argued that relegated City were still effectively a Premiership club until their Premier League share was returned at an AGM in the following June.

City's legal people contended that a club is relegated when it is mathematically impossible for them to escape the drop.

The High Court ruled in favour of Royle in July last year and awarded him £422,819.08. However, City took the matter to the Appeals Court in March where the ruling was reversed and the Town boss was ordered to pay £50,000 of Manchester City's legal fees.

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