West Ham’s official statement simply said three days ago, “Head Coach Graham Potter has left the Club”: The short statement did not specify whether he had been sacked or had his contract terminated, leaving room for interpretation. Suggestions that Graham Potter walked away from West Ham without compensation have been dismissed by club insiders.

A club source, when approached, settled the matter by responding, “Nobody walks away from a large amount of money” .

Potter was thought to be on a £5m annual basic at West Ham. After nine months in charge, he would have earned £3.75m in wages but would be due another £8.75m over the next 21 months of his remaining contract.

Existence of Potter break clause may limit Hammers’ costs

Some reports suggested that the club had a break clause next summer, which, if true, could limit their liability to another nine months or £3.75m.

It is normal in his type of situation to continue paying the former manager on the monthly payroll until a settlement can be agreed, in some cases, this arrangement continues to the end of the contract if a compromise cannot be agreed. Compensation can also be reduced if the manager lands...