Mike Ashley awaits Keegan verdict

Sep 26 2009 by Luke Edwards, The Journal

Although he would not have to pay any settlement out of his own pocket if the club went into administration he would lose the £100m he is asking for the club and would be just one of several creditors – including Barclays Bank.

Given Ashley’s stubborn refusal to lower his asking price, it is unlikely he would suddenly decide to accept such a massive loss, particularly as Tyneside businessman Barry Moat and two overseas consortia are still hoping to buy the club from him. Nevertheless, if Keegan wins his case and Ashley is forced to remain in charge until the start of the New Year, it could mean more players are sold in the January transfer window to cover the payout.

Given the small nature of the squad currently at the disposal of caretaker manager Chris Hughton, that is a daunting prospect as every player is needed to maintain a promotion push.

Ashley has successfully cut costs over the summer to ensure the club, with the help of a relegation parachute payment from the Premier League, is financially secure. A multi-million pound payment to Keegan would jeopardise that. United’s managing director Derek Llambias refused to comment on the story when contacted by The Journal, insisting nobody at the club would be talking about the case until it had been resolved.

The hearing is said to have been dramatic with a series of stunning revelations not painting either party in a particularly favourable light.

Witnesses have included Newcastle’s former executive director (football) Dennis Wise and head of recruitment Tony Jimenez, as it was the deterioration in the relationship between Keegan and Ashley’s employees which caused the majority of problems behind the scenes.