Compensation for Newcastle likely

Newcastle is on the verge of being compensated for injured player Michael and the case is edging towards a negotiated settlement that is likely to see the Football Association offer significantly greater payments to players injured on international duty.

The English governing body has one of the most progressive insurance policies in world football, offering to pay the wages of players for up to two years after they suffer injury. The sums involved - capped at approximately GBP 55,000 a week - are sufficient to cover the earnings of most of Steve McClaren's squad.

The policy encompasses footballers representing England at all levels, including youth and women players, with premiums working out at approximately GBP 200,000 per match during the World Cup. But the FA has recognized from Newcastle's response to losing their star asset that more must be done to mollify Premiership clubs.

A proposal will be placed before the FA's professional game board - which represents Premiership and Football League clubs - to increase the payouts, although the FA's executive main board would be unlikely to ratify any call for unrestricted cover.

"This is something that is under constant review but there has to be a balance over what we can afford," said a source. "If somebody is given GBP 200,000 per week by their club, the FA has no say in it. But if cover was uncapped we would be expected to pay it."

Owen's salary of more than GBP 5 million a year exceeds the FA's current cap and Newcastle have threatened court action to recover the difference after his knee injury at the World Cup, which may prevent the GBP 17.5 million striker playing this season.

Lawyers for the St James' Park club have also stated in their claim against the FA that the GBP 10 million investment in Obafemi Martins came as a direct result of Owen's injury and they are demanding some form of restitution for the otherwise unnecessary expense.

But dialogue continues and it is thought that the FA's latest offer - believed to enhance the GBP 55,000 weekly payout by a further GBP 20,000 to GBP 30,000 per week over the period of Owen's unavailability - may prove acceptable.

Newcastle is also seeking a payout from the GBP 6.6 million total compensation pool that FIFA set aside at the World Cup. Depending on the cost of other claims arising from the tournament in Germany, that payout could amount to GBP 1 million.

FIFA is looking at the issue of player compensation and an insurance fund and expects to have something in place in time for the 2010 World Cup in South Africa.

Source: euFootball.BIZ © Copyright 2006 - All rights reserved.