Lessons to learn from the Blackburn Rovers and Berg ‘fiasco’

Oliver McCann, employment partner at Napthens solicitors, talks us through the valuable lessons which businesses can learn from the mistakes made by Blackurn Rovers as the High Court ordered it to pay £2.25m compensation to its former manager.

Henning Berg was appointed as Blackburn Rovers manager last October. He was in charge for only 57 days before he was sacked due to a poor run of results. He has successfully claimed compensation for the balance of the three year term of his contract, a total of £2.25m.

A further meeting was arranged on October 31 in a local Blackburn hotel, between Derek Shaw, Paul Agnew and Henning Berg whereby they agreed the terms of his appointment. In particular, Berg alleges it was agreed that there would be a three year deal with full compensation if terminated early equivalent to the balance of the unexpired portion of the fixed term.

A note was made by the FD, during discussions with Paul Agnew, that there was to be “no 12 month notice period” – apparently contrary to a request made by the Blackburn Rovers owners Venkys.

A service agreement was eventually signed a few weeks later which provided for a three year fixed period subject to the rest of the terms of the service agreement. There was an early termination provision which provided for immediate termination but on the basis that a fixed sum of compensation be paid to Berg for the balance of the fixed term based on an annual salary of £900,000.

Ignore reports that suggest this was an unfair dismissal claim. It was not. To claim unfair dismissal the employee has to have the requisite length of service (which used to 12 months, but is now two years for those employed on or after April 6, 2012).

What Berg claimed was breach of contract and/or wrongful dismissal – in short, that his contract was terminated early but Blackburn Rovers failed to honour the liquidated damages clause for early termination.

  • Don’t rely on a mere offer of employment, particularly for senior appointments or fixed term deals. Ensure that any offer is subject to contract and follow the offer up with a full contract of employment which has been reviewed carefully to ensure it looks after the interests of the company.
  • Make sure you have a signed contract setting out the full terms of the agreement before employment commences – here Blackburn Rovers arguably lost negotiating power by confirming Berg’s appointment and allowing commencement of the role before all terms were agreed.
  • Always review the termination provisions in any contract of employment, but particularly for those in senior roles or where a fixed term contract is being offered.
  • Consider a liquidated damages clause for early termination of the contract and ensure it is set at a level which is correct and accounts for the departing employees future earning capacity.
  • Consider inserting alternative provisions which allow for early termination but with damages to be paid monthly and subject always to deduction of any future income received by the employee.
  • For senior appointments ensure that there is a formal procedure where the terms of the contract are agreed by the board of directors before it issued.
  • Ensure, where possible, that more than one director is required to sign the contract.

Enjoyed this? Read more from Lancashire Business View

Latest news

1

New India branch campus on the horizon for Lancaster University Keir Starmer meets Indian PM and included Prof Simon Guy Lancaster University. Pic Simon Dawson

New India branch campus on the horizon for Lancaster University

09 Oct 2025

2

Best events and talented students complete finalists list for Lancashire Tourism Awards 2026 Best Events and Talented students on Lancashire Tourism Awards finalist list

Best events and talented students complete finalists list for Lancashire Tourism Awards 2026

09 Oct 2025

3

East Lancashire Learning Group named UK digital transformation leader in CIO 100 Awards Andrew Dewhurst with the award win

East Lancashire Learning Group named UK digital transformation leader in CIO 100 Awards

09 Oct 2025

4

PHX Training appoints new business leader in Blackpool Jason Davenport PHX Training

PHX Training appoints new business leader in Blackpool

09 Oct 2025

5

Velocity seals Airbus extension worth up to $54m Velocity Composites Has Announced Its Entry Into The Us Market

Velocity seals Airbus extension worth up to $54m

08 Oct 2025

Background image for hub sign up block

LBV Hub

Leverage Lancashire Business View platforms

Post your news
Post your events
Post your offers
Build your network
Improve your SEO
Gain coverage in the magazine
Sign-up
Events
CMI Level 5 Management and Leadership Course
UCLanAerialCampus.jpg.jpg
LBV Hub Seminars
21 Feb 2025 - 21 Feb 2026

CMI Level 5 Management and Leadership Course

Preston Campus, Preston , PR1 2HE

09:00 - 17:00

CMI Level 5 Project Management Course
UCLanAerialCampus.jpg.jpg
LBV Hub Seminars
21 Feb 2025 - 21 Feb 2026

CMI Level 5 Project Management Course

Preston Campus, Preston, PR1 2HE

08:00 - 17:00

Help to grow management course
Help to grow - barriers to growth.png.png
LBV Hub Seminars
26 Sep 2025 - 16 Dec 2025

Help to grow management course

Preston Campus , Preston , PR1 2HE

09:00 - 15:00

Advantage: AI – A Workshop for Business Leaders – Oct 10th
Ai 10.10.png.png
LBV Hub Seminars
10 Oct 2025 - 10 Oct 2025

Advantage: AI – A Workshop for Business Leaders – Oct 10th

Door4 Office, Burnley Wharf, Burnley, BB11 1JG

09:00 - 12:00

Unlocking major project opportunities in the North West
Lancs-cham-logo.jpg.jpg
LBV Hub Seminars
15 Oct 2025 - 15 Oct 2025

Unlocking major project opportunities in the North West

Strathmore Hotel, Morecambe, LA4 5AP

08:00 - 10:00

The New Employee Rights Landscape: Day One Compliance Essentials
EventBrite NORi - 15th Oct 2025 Webinar.png.png
LBV Hub Webinar
15 Oct 2025 - 15 Oct 2025

The New Employee Rights Landscape: Day One Compliance Essentials

Microsoft Teams, Microsoft Teams, PR253XH

13:30 - 15:00

The Autumn Re set - pour me a wine
LBV Advert_Autumn Reset 1200 x 630px.png.png
LBV Hub Networking
16 Oct 2025 - 16 Oct 2025

The Autumn Re set - pour me a wine

The Artistry House , Preston , PR1 3JJ

17:30 - 19:30

The Business Network Central & East Lancashire
LBV Header (26).png.png
LBV Hub Networking
16 Oct 2025 - 16 Oct 2025

The Business Network Central & East Lancashire

Stanley House, Blackburn, BB2 7NP

11:30 - 14:15

October Freelancer Meet-Up
LBV Hub Networking
16 Oct 2025 - 16 Oct 2025

October Freelancer Meet-Up

Society1, Coworking Space, Preston, PR1 3LT

10:00 - 11:30

Women scaling up Blackpool Fylde and Wyre
LBV Hub Seminars
22 Oct 2025 - 09 Jan 2026

Women scaling up Blackpool Fylde and Wyre

The Small Business Academy, Blackpool, FY4 5JX

09:30 - 15:30

HR Essentials for pubs, bars and licensed venues
EventBrite NORi - 22nd Oct Webinar.png.png
LBV Hub Webinar
22 Oct 2025 - 22 Oct 2025

HR Essentials for pubs, bars and licensed venues

Online - Teams, Leyland, PR253XH

13:30 - 15:00

RISE - Lancashire's unique leadership programme for women
thumbnail_Emma Weston Illustration WENDY BOWERS RISE Illustrstion.jpg.jpg
LBV Hub Seminars
22 Oct 2025 - 18 Mar 2026

RISE - Lancashire's unique leadership programme for women

East Lancashire Chamber of Commerce, Clayton le Moors, BB5 5JR

09:30 - 15:30

Advertise with us

Reaching 50,000 members, our print, digital and event platforms offer a fantastic way to raise your business profile and help you grow.

Find out more LBV124 Online Graphic
Subscribe now

Weekly news bulletin