Birmingham rivals reach McLeish truce

Aston Villa have agreed to pay an undisclosed sum in compensation to Birmingham City over Alex McLeish’s controversial defection.

The Scottish manager abruptly quit his post at Championship-bound Birmingham last month and signed for Villa five days later, drawing accusations of ‘tapping up’ from his former club.

Acting chairman Peter Pannu had demanded Villa pay 5.4 million pounds as stipulated in McLeish’s contract, which had two years left to run.

Pannu also threatened to report Villa to the Premier League and file an injunction against the 52-year-old’s move to Villa Park.

However, the threat of legal action has dissipated after the rival Midlands clubs came to a financial arrangement in mediation.

A joint statement from the clubs read: “Birmingham City and Aston Villa can confirm that agreement has been reached between the parties, ending the legal disputes surrounding Alex McLeish’s departure.”

“Aston Villa has agreed to pay Birmingham City an undisclosed figure following negotiations whereby the parties have agreed to bring to an end all disputes.”

The settlement also takes into account Villa’s subsequent poaching of Blues first-team coach Peter Grant and chief medical officer Dr Ian McGuinness.