Berg v Blackburn Rovers Football Club & Athletic Plc [2013] EWHC 1070

Mr Berg was employed as Blackburn’s club manager in November 2012 and fired in December 2012. Under his service agreement he was entitled to payment of his full wage until the end of his fixed term contract in June 2015. This amounted to £2.25 million. Blackburn initially admitted its liability to Mr Berg under the agreement, but then sought to withdraw it, arguing its Managing Director did not have authority to conclude the contract on the terms he did. Blackburn argued that the Managing Director did not have actual authority to enter into a contract with Mr Berg other than on the basis that it was terminable on 12 months notice and compensation for early termination was capped at 12