Rix drops £500,000 Champions League claim against Hearts

FORMER head coach Graham Rix has ditched a claim for £500,000 against Hearts after the club's exit from the Champions League.

The claim, for a bonus for qualification to the group stages of the tournament, had been part of Rix's legal action against the Tynecastle side following his dismissal in March. He is continuing to seek £444,175 in the litigation at the Court of Session in Edinburgh.

Hearts insist his dismissal was justified, and that he should receive no payment. Rix was appointed to succeed George Burley as manager in November last year, and his contract, with a salary rate of £350,000 a year, ran until 31 July, 2006. He was to receive a bonus of £300,000 if Hearts finished second in the league, and a bonus of £500,000 if they made it to the group stages of the Champions League.

The contract allowed for summary dismissal of the manager for gross misconduct, or for any act likely to seriously damage the interests of the club or to cause it significant financial loss.

In his court action, Rix maintains his sacking was not justified and that he is due damages for breach of contract. His claim had been divided into two elements - the £500,000 Champions League bonus, and £444,175 to cover lost earnings by the contract ending early and the bonus for being runners-up in the league.

Yesterday, at a preliminary hearing, the judge, Lord Reed, a follower of football, asked if the first element remained a live issue, clearly appreciating that Hearts had gone down 3-0 to AEK in Athens and a 5-1 aggregate defeat in their third qualifying round tie. Tim Edward, solicitor-advocate for Rix, replied: "Following events of last night, no."

In their defences to the claim, Hearts said that even if progress had been made to the group stages, Rix would not have been due the bonus because it, like the other bonus for league position, had been conditional on Rix still being manager when the event triggering the payment was achieved. He had been dismissed around two months before the team secured the runners-up spot to Celtic.

The club say Rix had breached the conditions in his contract which permitted summary dismissal. In February, prior to a match against Dundee United, he told the players that the team had been selected by Vladimir Romanov. "In making this statement, he disclosed and misrepresented confidential information in relation to his discussions with Vladimir Romanov," said Hearts.

"His comments were widely reported, and attracted criticism and negative publicity for the club. He ought to have known that making such a statement would damage the reputation, business and interests of the club. His comments undermined the morale of the team and generated resentment between the players and the club."

Under pressure from the players to maintain continuity, the club had agreed not to sack Rix immediately. However, the poor sequence of results under Rix continued, and he was dismissed in March.

The club also argue that the purchase of players by Rix had been likely to cause financial loss, highlighting Mirsad Beslija, Chris Hackett and Lee Johnston. Beslija, Hearts' record signing, had cost 1 million from Racing Genk of Belgium, yet Rix had not viewed him playing before recommending his purchase to the board. He had also insisted, the club allege, that Hackett and Johnston were necessary for Hearts, but he did not play them regularly and they were subsequently allowed to leave without payment.

The case is due to return to court at a later date.

Taken from the Scotsman