Reports say Kevin Keegan has quit as Newcastle United manager

Last Modified: 02 Sep 2008
By: Channel 4 News

Kevin Keegan has walked out of Newcastle United after a dispute over the club's transfer budget, according to Sky Sports News.

Kevin Keegan has quit as manager of Newcastle United, it was claimed today.

The 57-year-old walked out after a disagreement with the club's board over the transfer budget, according to Sky Sports News.

It is understood Keegan hoped to land three or four major signings ahead of last night's transfer deadline, but big money deals failed to materialise.

The club's only business on deadline day was a £5.7m signing of Spanish striker Xisco and the loan signing of midfielder Ignacio Gonzalez.

While Keegan recently claimed James Milner would not be sold, only for the midfielder to join Aston Villa in a £12m move.

Keegan's concerns over a lack of spending power first emerged last season when he said Newcastle were a "million miles away" from being able to compete with Chelsea.

He also said he would not be given the money to break into the top four within the three years of his managerial contract.

Former England and Manchester City boss Keegan, who managed the club from 1992 to 1997, returned for a second time to St James' Park in January after the sacking of Sam Allardyce.

If the reports are true it will be the fifth time Keegan has quit as a manager, after resigning previously from Newcastle, Fulham, England and Manchester City.