Celtic boss wins libel damages

Martin O'Neill took action against The Observer

Celtic manager Martin O'Neill has won "substantial" but undisclosed libel damages from a Sunday newspaper which alleged that he was set to leave the club for Manchester United.

The Scottish club's manager also accepted a public apology from The Observer over an article, entitled: "Revealed: Plot to Oust Ferguson".

The article alleged that O'Neill had held secret talks with Manchester United and reached an informal agreement about taking over from current boss, Sir Alex Ferguson.

Mr O'Neill's legal team said the allegations had caused "great distress" to him, his family and everyone connected with Celtic Football Club.

Sir Alex Ferguson: Plot to oust him denied

On Monday, solicitor Paul Hackney told the High Court in London that the front-page article on 20 May had upset his client.

He said that prior to it appearing there had already been considerable speculation about the former Leicester boss heading back south to manage the English champions.

Mr Hackney said The Observer article alleged that Manchester United's chief executive had held informal talks with Mr O'Neill about managing the club when Sir Alex Ferguson retired in 2002 or even sooner.

He said that in the sports section of the broadsheet it was also alleged that an informal agreement had been reached between the two parties in a bid to avoid any breach of Football League rules.

'Distress and anxiety'

Under the laws of the game it is currently illegal to approach or 'tap' any player or manager without the club's express permission.

Mr Hackney said the nature of the allegations led to them being widely reported in print and throughout the broadcast media.

He said: "These allegations question his loyalty and have caused great distress and anxiety to Mr O'Neill, his family, the directors and employees of Celtic FC and its supporters."

Martin O'Neill won undisclosed damages

Mr Hackney said his client had launched the action because he was not prepared to see his loyalty to Celtic being questioned or his reputation damaged.

He said The Observer had now accepted that the allegations in the articles were "without foundation" and should never have been published.

The newspaper has agreed to pay Mr O'Neill "substantial" libel damages and pay his legal costs.

The Observer's lawyer Jan Johannes issued an apology on behalf of the newspaper.

He said: "Through me The Observer confirm their acceptance that the allegations made in the article are without foundation and offer their sincere apologies to Mr O'Neill for the distress and anxiety to Mr O'Neill, his family and Celtic Football Club."