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

Morecambe Business Improvement District given fresh five-year mandate David Waddington Chair L John Oneill Bid Manager R 1024x768

Morecambe Business Improvement District given fresh five-year mandate

14 Aug 2026

2

fulfilmentcrowd appoints Neil Midgley as director of operations Neil Midgley Director Of Operations

fulfilmentcrowd appoints Neil Midgley as director of operations

14 Aug 2026

3

Inheritance tax changes prompt planning review Stuart Maher

Inheritance tax changes prompt planning review

14 Aug 2026

4

Finding the right channel for growth Phil2026

Finding the right channel for growth

13 Aug 2026

5

Preston College secures £3.6m for major construction centre revamp Preston College

Preston College secures £3.6m for major construction centre revamp

13 Aug 2026

Blackburn College (July-Aug 26)
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
LBV130 September/October Magazine Networking Event
LBV130 Magazine Launch Social720No Text 17 Sep 2026

LBV130 September/October Magazine Networking Event

The Beehive Blackburn, Shadsworth Business Park, BB1 2QS

08:30 - 10:30

Built Environment Conference 2026
BEC26 WW Logo720 24 Sep 2026

Built Environment Conference 2026

EG On The Move, Waterside Head Office, Blackburn, BB1 2FA

08:30 - 13:00

Sub36 Awards 2026
Sub36 WW Logo720 16 Oct 2026

Sub36 Awards 2026

Park Hall Hotel & Spa, Chorley, PR7 5LP

18:30 - 00:30

LBV131 November/December Magazine Networking Event
LBV131 Magazine Launch Social720No Text 19 Nov 2026

LBV131 November/December Magazine Networking Event

Lancashire

08:30 - 10:30

Lancashire Business Day 2026
LBD26 WW Logo720 27 Nov 2026

Lancashire Business Day 2026

Burnley Football Club, BB10 4BX

12:00 - 17:00

Finding, Getting and Keeping The Right People - FREE Workshop
Gemini_Generated_Image_iotoi2iotoi2ioto.png.png 20 Aug 2026 - 20 Aug 2026

Finding, Getting and Keeping The Right People - FREE Workshop

The Wellsprings, Bolton, BL1 1SB

09:00 - 11:30

U35 Networking
Logo.jpg.jpg 25 Aug 2026 - 25 Aug 2026

U35 Networking

The Royal Hotel & Bar, Lancaster, LA1 1YD

17:30 - 19:00

Preston Freelancer Meet-Up: August
Freelancer Meet-Up Square August.png.png 27 Aug 2026 - 27 Aug 2026

Preston Freelancer Meet-Up: August

Society1, Preston, PR1 3LT

10:00 - 12:00

Build Your Business To Sell It - Even If You Aren't Planning To Sell - FREE Workshop
Gemini_Generated_Image_ysrasxysrasxysra.png.png 27 Aug 2026 - 27 Aug 2026

Build Your Business To Sell It - Even If You Aren't Planning To Sell - FREE Workshop

The Wellsprings, Bolton, BL1 1SB

09:00 - 11:30

Mind Over Mountain: Brunch at Ivory Tower
mind-over-mountain-complete.jpg.jpg 11 Sep 2026

Mind Over Mountain: Brunch at Ivory Tower

Ivory Tower, Preston, PR1 2NL

12:30 - 16:30

90 Day Business Planning Workshop
GCJune 26 600 x 280.jpg.jpg 25 Sep 2026 - 25 Sep 2026

90 Day Business Planning Workshop

The Holiday Inn, Bolton, BL1 2EW

09:00 - 16:30

90 Day Business Planning Workshop
GCJune 26 600 x 280.jpg.jpg 25 Sep 2026 - 25 Sep 2026

90 Day Business Planning Workshop

The Holiday Inn, Bolton, BL1 2EW

09:00 - 16:30

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 LBV129 Online Graphic
Subscribe now

Weekly news bulletin