According the local Hull Daily Mail the Tiger's Owner is actually seeking a compensation package in excess of what Pearson has written into his contract. See extract below:
"HULL City are demanding in excess of £1m from Leicester City if they are to finally land manager Nigel Pearson.
The Tigers have been involved in lengthy talks over a settlement package this week and an uncompromising stance has ensured Pearson's exit has become increasingly protracted.
City owner Assem Allam may have resigned himself to losing his manager but he is determined to see the divorce come on his terms.
The Mail understands Leicester are willing to meet a compensation figure written into Pearson's contract that would see City net about £700,000.
However, given the disruption to his side's promotion push, and keen to send out a message of the club's strength, sources say Allam wants a further £500,000 to conclude the deal. With Leicester keen to complete the swoop and have Pearson in place as soon as possible, that could force the manager to consider resigning from his role at the KC Stadium.
It is not the way Pearson would like to leave East Yorkshire, but having seemingly burnt his bridges with the Tigers, he could be left with little other choice but to resign.
Compensation packages for Pearson and his two assistants, Craig Shakespeare and Steve Walsh, would then be decided in due course by legal representatives from both clubs.
Pearson was not expected to be at City's training ground today as the first team are put through the final session of the week before time off is granted to coincide with the international break.
Duties will again fall on Nick Barmby and Stuart Watkiss as the search for a new boss continues out of the spotlight.
Barmby declined to comment on the possibility of him succeeding Pearson as first-team boss after the reserve team clash with Gateshead at North Ferriby last night."
Hull Boss Trying It On...
posted on 10/11/11
A complete farce. Our owners have not covered themselves in glory here, the exact opposite in fact. I had a lot of faith in them after the money they spent, now they seem clueless.
posted on 10/11/11
It's not exactly the owners' fault, Hull are trying to take the michael with the compensation money and we are standing firm. Fair play to them.
posted on 10/11/11
It IS our owners fault, Hull know we are in week 3 of our manager search and time isnt on our side, we need a man at the helm now. If this was 2 weeks ago, or even one week ago we would be in a better bargaining position. They have waiting too long.
posted on 11/11/11
I sympathise with Hull not being happy about being raided mid-season, but if they wrote into NP's contract the £700K clause that has been reported, they are putting themselves in the wrong (not just ethically but legally) by not abiding by those terms, and may well find that they have cut off their nose to spite their face.
If media reports are correct, and the club is in breach of its agreement with him, NP is under no moral (let alone legal) obligation to refrain from walking out, because the club has already invalidated the contract.
posted on 11/11/11
As said above, if there is a clause in NPs contract, at best, you would imagine a tribunal would conclude that this is the amount that should be paid.
Hull also need to consider the implications of costs for a tribunal. If the courts find that there was no need for such a judgement, - i.e. Leicester have already offered the amount clearly defined in the contract, it is quite plausible that HCFC may have to pay the court costs (which may be months and months worth).
And finally a pear-shaped scenario for Hull, the courts may find that they have breached the contract by not accepting the clause based amount and causing disrepute, and as such, they may deem an amount below 700k suitable, minus court costs.