Liverpool’s decision to sack Brendan Rodgers just eight games into the new Premier League season could cost the club more than £10million.
Rodgers was dismissed on Sunday with almost three years remaining on a contract worth, including bonuses, around £5million a year.
Telegraph Sport understands that Liverpool owner, Fenway Sports Group, did not make any provision for the early termination of Rodgers’ contract when he was handed a new deal in May 2014 after narrowly missing out on winning the Premier League title.
Like his players, Rodgers had performance related clauses in his contract, but sacking him now means Liverpool cannot penalise him for failing to secure a top-four finish or not winning a trophy.
That means the Northern Irishman is free to try to claim the full value of the remainder of his contract.
Liverpool will no doubt try to negotiate the compensation figure down, with the Anfield club looking to give Rodgers a pay-off of around £7m, but that is well below what the 42-year-old is entitled to.
Sources close to Rodgers believe he will be in no rush to make an immediate return to management and would rather get the right compensation package agreed and wait for the right opportunity.
Rodgers, who has been involved in a multi-million pound divorce dispute with his estranged wife Susan over a property empire that consists of 102 houses, still believes he can manage a top club – either in England or abroad.