Blackburn have been ordered to pay £2.25million in compensation to former manager Henning Berg by a High Court judge.
Former Rovers defender Berg's spell in charge at Ewood Park was brought to an end 57 days into a 3-year deal last December, following a run of one win in 10 matches.
The case argued by Blackburn was that managing director Derek Shaw acted without authority from owners Venky's in granting Berg a contract that entitled him to full payment of his agreement in the event of an early dismissal.
Venky's preference was a 12-month notice period, but Judge Mark Pelling dismissed the notion that Shaw lacked the authority to finalise the terms of Berg's deal.
Former Blackburn Rovers striker Kevin Gallacher spoke to Granada sports reporter Daniel Hewitt about Henning Berg's departure from the club.
Blackburn Rovers have sacked their manager Henning Berg and three other members of the squad's coaching staff.
Berg signed a three-year contract 57 days ago at Ewood Park. He was in charge for just 10 matches and oversaw one win, three draws and six loses.
Assistant manager Eric Black, first team coach Iain Brunskill and goalkeeping coach Bobby Mimms are leaving the club with immediate affect.
A statement on the club's website said: "This decision has been taken following a very disappointing sequence of results.
"The club thanks the four men for their efforts and wishes them every success for the future."
Blackburn Rovers manager Henning Berg has spoken about allegations that he stormed out of the club's Christmas party.
It's been reported he walked out after he was made to wear a Michael Jackson wig and dance on stage.
The party was meant to lift morale after some disappointing results.
In a statement, Berg says he was asked to do things which weren't appropriate given the club's league position and claimed it was always his intention to leave the party early.
Shebby Singh, Blackburn Rovers' Global Football Adviser, has welcomed new manager Henning Berg back to Ewood Park.
On his first day in the hot-seat at Ewood Park, new Blackburn Rovers manager Henning Berg has spoken to Granada Reports sports reporter Daniel Hewitt.