SPORTS and employment specialists have spoken of the legal implications after Liverpool FC co-owner Tom Hicks admitted that he tried to line up Jurgen Klinsmann as a replacement for current manager Rafael Benitez.
It will only give Benitez an “open-and-shut� case for constructive dismissal if he acts immediately, according to MHL Support.
MHL, owned by the Bibby Line group, works closely with other Premiership clubs to ensure they comply with employment laws, and said the repercussions of Hicks’ admission could have an immense financial implication on the club if Benitez chooses to resign and seek a claim for constructive dismissal.
CEO Marc Schroder said: “A number of sports lawyers have spoken out about the fact that Benitez would be entitled to resign and seek a successful claim for constructive dismissal after Hicks’ comments undermined his position.
“However, he is very much fighting to stay at Anfield as manager and it seems he has no plans to drag the case through the courts at present. As such, he won’t be in a position to pursue such a claim – he is continuing in the post and that would weaken the case and prejudice its outcome.�
Nevertheless, he said Hicks’ error of judgment was something bosses – of football teams or otherwise – should carry in the forefront of their minds.
He added: “Hicks made a huge mistake in voicing his desires. Advertising someone’s position – which is effectively what Hicks did – while they are still in it is an open-and-shut case for constructive dismissal.
“I’m sure it is commonplace within the football world, but this slip of the tongue has drawn enormous attention to Hicks’ opinion and undermined Benitez’ position. Hicks’ claim that his offer to Klinsmann was an insurance policy in case Benitez left is not likely to stand up in court.�
Michelle Stewart, associate solicitor at Kirwans, agreed that it had been “a perfect example of what not to do� for employers.
“Any employer acting in this manner could be leaving themselves open to a claim of constructive dismissal,� she said. “In order to bring such a claim, the employee must resign, as a result of the employer’s behaviour. This behaviour must amount to a fundamental breach of the contract, which the employee is entitled to treat as an actual dismissal by the employer. However, these types of claims can be difficult to prove.
“If we use Benitez as an example, he could potentially claim that openly talking to his potential successor seriously undermines his position, and shows that his employers have lost all confidence in him making his position untenable. In many cases, and particularly within the football industry, it is likely to lead to an out of court settlement, with the parties agreeing to enter into a “compromise agreement�.�
A compromise agreement will usually include a sum of money by way of financial compensation on the understanding that the employee agrees not to take legal action against the employer.
These sorts of agreements are fairly common when football managers are removed before the end of their contract and can be a serious option for clients to consider rather than risk potentially expensive claims.