Celtic manager Martin O'Neill today accepted substantial undisclosed libel damages over an article that said his representatives had been in secret talks about succeeding Manchester United boss Sir Alex Ferguson.
O'Neill's solicitor, Paul Hackney, told Mr Justice Gray at the High Court in London that before the story appeared in the Observerin May, there was much speculation in the media that O'Neill would take over from Ferguson on his retirement next summer.
There followed further publication of O'Neill's express denial of any intention of wishing to become United's manager or of leaving Celtic before the end of his three-year contract in 2003.
The front page Observerstory, headed "Revealed: Plot To Oust Ferguson", mentioned secret informal talks between United's chief executive and O'Neill's representatives.
The allegation was repeated in the sports section and it was stated an informal agreement had been reached to avoid a breach of Football League rules by United.
The front page of the Scottish edition carried the headline "Celtic Boss Lined Up For United Job".
Mr Hackney said the allegations questioned O'Neill's loyalty and had caused great distress and anxiety to him, his family, the directors and employees of Celtic and its supporters.
He had issued proceedings because he was not prepared to allow his commitment to Celtic and its supporters to be undermined and for his reputation to be impugned.
The newspaper's publishers, Guardian Newspapers Ltd, now accepted the allegations were without foundation and should not have appeared.
O'Neill wished it to be known that he does not employ an agent and has never authorised anyone to conduct talks with United while contracted to Celtic.
The newspaper offered an unqualified apology and agreed to pay O'Neill substantial damages and his legal costs.
PA