Kevin Keegan is suing Newcastle United for £9m in damages after claiming unfair dismissal over his departure as manager, according to reports.
Keegan resigned after furious disagreements with managing director Derek Llambias over the club's transfer policy, which saw James Milner sold to Aston Villa and Fabricio Coloccini, Jonas Gutierrez, Danny Guthrie, Xisco and loan signing Ignacio Gonzalez drafted in.
It is understood Keegan, who had insisted Milner was not for sale, had little say in the summer acquisitions, and he was enraged when it emerged there had been efforts to unload high-earners Michael Owen, Joey Barton and Alan Smith as the transfer window closed.
Keegan's departure sparked angry protests by fans and the club went into meltdown. Ashley tried unsuccessfully to persuade Keegan to return as manager but no agreement could be reached.
Mike Ashley then took the decision to sell the club and the hunt for a new investor is still ongoing.
Keith Harris, the man charged with selling Newcastle, revealed earlier today that he is in talks with seven parties who are interested in buying the club - and believes they will change hands by the end of next month.
But in what has become something of a daily soap-opera, last week the club announced that Tony Jimenez had left the club. The vice-president (player recruitment) was an integral part of the Newcastle hierarchy.
Following his departure a club statement read: "Newcastle United can today confirm that Tony Jimenez has left the club.
"Tony, who was appointed vice-president (player recruitment) in January, has made the decision in order to pursue other interests.
"Newcastle United thanks Tony for all of his hard work and efforts and wishes him every success in the future."
In the meantime former Wimbledon boss Joe Kinnear has been installed as interim manager. He appears to have created some stability on the pitch, with Newcastle picking up a point in their last match against Everton, halting a run of five successive defeats.