Town boss Joe Royle was in court in Liverpool yesterday pursuing his £400,000 claim against former club Manchester City. Royle was sacked by City three years ago as they dropped out of the Premiership.
He claim concerns the golden handshake paid after his dismissal on May 21st, 2001. City were at that point still in the Premiership but were mathematically unable to escape relegation. However, it is Royle's contention that officially City were still a top flight club until the Premiership AGM on June 6th, 2001.
After being sacked for "incompetence”, Royle expected to receive compensation at an agreed Premiership level of £750,000 net of tax, however, he received £300,000. Royle claims he is owed the difference between the two sums, which comes to around £400,000.
Royle's lawyer, Jonathan Harvie QC, said in court yesterday that City had wrongly compensated Royle on the basis that the club had already officially become a Division One side.
Harvie said: "We're saying it was self-evident that they left the Premiership or were no longer in it on, and only on, June 6th.
"That must be unfortunate for Manchester City. They jumped the gun if they wanted to get rid of Mr Royle at First Division service rates. They got it wrong and they are suffering."
Royle said yesterday that he had made the compensation agreement with then chairman David Bernstein himself when agreeing a new deal in June 2000, after taking City from Division Two to the Premiership.
The former England international says he would probably use an agent if a similar situation were to occur again: "I was elated at that time, very confident, and very positive. I had negotiated a contract myself privately rather than have an agent do it, which is not something I would do again."
On May 17th, 2001, with relegation confirmed by a 2-1 defeat to Town at Portman Road, Royle met Bernstein in an Indian restaurant and discussed contracts and the season ahead. Royle said that at the time he did not expect to be relived of his duties.
But at another meeting four days later he was sacked, although the Town boss says he received no written confirmation of his dismissal.
Former City chairman Bernstein argued that a club's divisional status is settled simply by the league table: "If you ask football supporters, managers, directors or anybody who knows football, they would say a club ceases to be a member of the division either when it is mathematically impossible to stay up, or, certainly, at the end of the season."
The result of the hearing is expected in the next couple of days with Royle not expected to be in court. He is returning to Portugal to co-commentate on England's Euro 2004 quarter-final with the host nation this evening.