Town manager Joe Royle was said to be "delighted" after winning his court battle against former club Manchester City. Royle was awarded £422,899.08 by Judge Michael Kershaw QC at the High Court in Liverpool earlier today.
A statement released on Royle's behalf said: "Joe Royle is naturally delighted at the result of this case but is sorry that it had to be brought at all.
"Joe is sorry for City's fans that the board did not see fit to comply with their contractual obligations, or to settle this case without the need for a trial and the attempt to embarrass Joe by making scandalous and unwarranted allegations."
City were ordered to pay £65,000 in interim costs with the full amount to be agreed at a later date.
A Manchester City spokesman said: "The result is very disappointing. The judgment is contrary to the firm advice we received from our QC and leading experts.
"It does not recognise the common understanding of when a club is relegated and we believe produces an unfair result whereby Mr Royle has received extra reward for failure."
City plan to launch an appeal at the High Court in London.