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

EG On The Move seals 27-site deal Zuber Issa, pic provided by EG On The Move

EG On The Move seals 27-site deal

01 May 2026

2

FWP’s community goal for Trafford FC is a winner Trafford FC plan

FWP’s community goal for Trafford FC is a winner

01 May 2026

3

Strong results in first year as EOT for Conlon Construction Conlon board includes Andrew Makinson, Lee Parry, Nadine Ng, Darren Lee, and chairman Guy Parker

Strong results in first year as EOT for Conlon Construction

30 Apr 2026

4

Lancashire manufacturers backed to adopt AI with new Made Smarter toolkit ELE Advanced Technologies

Lancashire manufacturers backed to adopt AI with new Made Smarter toolkit

30 Apr 2026

5

Experts stress the urgency of starting AI journey Speakers at the Cybersecurity summit

Experts stress the urgency of starting AI journey

30 Apr 2026

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
LBV128 May/June Magazine Networking Event
Canva - Mag Launch
Networking
19 May 2026

LBV128 May/June Magazine Networking Event

Colne Market Hall, Lancashire, BB8 0HS

08:30 - 10:30

Funding Summit
Funding Logo Canva Mid
Summit
17 Jun 2026 - 17 Jun 2026

Funding Summit

Village Hotel Blackpool

08:30 - 11:00

Society1 Open Coworking Day
LBV Hub Networking
06 May 2026 - 06 May 2026

Society1 Open Coworking Day

Society1, Coworking Space, Preston, PR1 3LT

10:00 - 16:00

The AI Lab: E-commerce
LBV Hub Seminars
08 May 2026 - 08 May 2026

The AI Lab: E-commerce

Door4, Burnley Wharf, Manchester Road, Burnley, BB11 1JG

09:00 - 11:30

Emergency First Aid at Work
LBV Hub Seminars
08 May 2026 - 08 May 2026

Emergency First Aid at Work

FGH Training, 3rd Floor, Storey House, White Cross Business Park, Lancaster, LA1 4XQ

09:00 - 16:00

Fire Warden Training
Logo.jpg.jpg
LBV Hub Seminars
11 May 2026 - 11 May 2026

Fire Warden Training

Bell Lancaster, Cleveley House Farm, Miller Brow, , Forton, PR3 1DR

09:00 - 15:00

The Business Network Central and East Lancashire
LBV Hub Networking
14 May 2026 - 14 May 2026

The Business Network Central and East Lancashire

Longridge House, Preston, PR3 2TB

11:30 - 14:15

Research and Knowledge Exchange Festival 2026
Spark 2026 newsletter v3-5 (1).png.png
LBV Hub Seminars
18 May 2026 - 22 May 2026

Research and Knowledge Exchange Festival 2026

University of Lancashire, Preston, PR1 2HE

10:00 - 20:00

Culture, Community & Commerce in the City # 1 - Northern Dough Co x WASH Studio
8.png.png
LBV Hub Networking
20 May 2026 - 20 May 2026

Culture, Community & Commerce in the City # 1 - Northern Dough Co x WASH Studio

SOciety1, Coworking Space, Preston, PR1 3LT

18:00 - 20:30

How to handle an underperforming employee
Logo.jpg.jpg
LBV Hub Seminars
20 May 2026 - 20 May 2026

How to handle an underperforming employee

The Longlands Hotel, Carnforth, LA6 1JH

08:00 - 10:00

U35 Networking Event
Logo.jpg.jpg
LBV Hub Networking
20 May 2026 - 20 May 2026

U35 Networking Event

The Royal Hotel & Bar, Lancaster, LA1 1YD

17:30 - 19:00

Stop Underselling, price for profit, not just survival
Logo.jpg.jpg
LBV Hub Seminars
21 May 2026 - 21 May 2026

Stop Underselling, price for profit, not just survival

Lancaster & Morecambe College, Lancaster, LA1 2TZ

08:00 - 10:00

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