Brendan Rodgers could be looking at a seven-figure payout after he left Celtic this week.
The former Celtic boss was reportedly being paid £3m per year by the Parkhead club making him the best-paid manager in Celtic’s history.
Rodgers was under pressure after a recent run of results put the spotlight on the former Celtic boss heading into a high-pressured week where Falkirk and Rangers await.
But now Rodgers has gone, attention turns to whether or not the ex-Celtic manager will be owed any money from the club after he tendered his resignation to the board this week.
The ‘variables at play’ over Brendan Rodgers and Celtic compensation
Normally when a manager resigns, they forfeit their right to any compensation paid by the club so does that rule apply to Rodgers after his Celtic exit?
To find out, 67 Hail Hail spoke to finance expert Adam Williams to see if the former Celtic man will be owed anything from the club.
Williams told 67 Hail Hail, “Rodgers’ deal was due to expire in the summer. Clearly, there is some ambiguity about whether or not he was offered a new contract by Dermot Desmond and his enforcers, but that appears to be the inflection point that has ultimately led to the termination of the deal.
“He has resigned, which you might assume would mean he has to forfeit his remaining wages. But I think it’s much more likely that they will have reached a settlement between them based on the remaining value of his contract.
“He reportedly earned £3m per year. We don’t know whether that is his basic salary or if it includes bonuses. We also don’t know if that figure is Rodgers’ salary or the total cost to the club before factors like National Insurance, which would increase the overall cost to Celtic by around 15 per cent.
“On top of that, you also have considerations such as legal fees. Moreover, you have to factor in whether he ultimately takes some of his staff with him. So there are a lot of variables at play.”
The seven-figure sum Celtic could owe Brendan Rodgers
So taking into account everything Williams has said, what could Celtic be in line to cough up to Rodgers?
Williams continued, “The starting point for working out managerial compensation is that you assume that the club pays out the remaining value of the contract.
“But that really depends on specific terms of the deal. Many contracts have break clauses or provisions which mean the cost for the club is reduced if certain objectives aren’t met. Again, we don’t know the exact terms Rodgers was on.
“So in reaching a settlement, those are the factors at play. If he has eight months remaining at £3m-a-year, then the starting point for negotiations is around £2m. I think, in all likelihood, the final figure is going to be lower than that. Cautiously, I’d suggest maybe £1m.
“If that is the difference between finishing 1st and 2nd in the Scottish Premiership and potential passage to the Champions League, then it’s a pretty straightforward risk-benefit analysis to make.”
With O’Neill back in charge for the time being, all attention now turns to Celtic’s next fixture against Falkirk.
A win is crucial to keep the pressure on Hearts at the top of the table who face a tricky trip to St Mirren tonight.
Receive a digest of our best Celtic content each week direct to your mailbox
