JOE Royle says he has no regrets about taking Manchester City to court, despite being ordered to pay back more than '400,000 to the club.

The Appeal Court in London overturned a High Court decision last year that the former Blues manager was entitled to the money as a pay-off when he was sacked in 2001.

But Royle said afterwards: "When I was given the money after the earlier case, City suggested it go to charity, so I assume they will adhere to their own suggestion.

"I don't want to become embroiled in a war of words and the final line is this is going to the House of Lords. I don't have any regrets about the way this has gone because the legal system is there to be used."

Royle was sacked as boss in May 2001 after City were relegated from the Premiership, amid allegations that a drinking culture had taken root at the club.

A key issue in the legal action was the question of whether Royle was still a Premiership manager at the time of his dismissal, or a First Division manager, which affected how much compensation he was entitled to.

Appeal

At the time of his sacking, City's fixtures had been completed but the football season had not finished, with the First Division play-offs still going on.

Royle's solicitor, Mark Lewis, said that although the Court of Appeal had rejected their application to appeal he now intended to apply directly to the House of Lords, seeking an application to appeal.

Manchester City deputy chairman Bryan Bodek said: "We are naturally delighted that all three Appeal Court judges have ruled in our favour and that leave for appeal has been refused. Hopefully this will be an end to the matter. It is a victory for common sense and reflects what happens in the real world. Joe's case, partly funded by the PFA, was based around a technicality.

"Our fans know we acted honourably in offering compensation which was fair as the club had been relegated to the then First Division. That was the contractual agreement. We did intend to compensate Joe but at the appropriate level and there were efforts made to settle out of court through mediation on at least two occasions."

Royle, 55, a former City player and now manager of Ipswich Town, said the behaviour of club officials was "embarrassing" in that they had sent a letter to the Premiership relegating themselves before the end of the season.

City will now bank almost '600,000 as the club will get back the '423,000 pay-off cash, plus '175,000 from the Inland Revenue.

The Blues also won more than '80,000 of their '150,000 legal fees from Royle.

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