Norwich City Football Club and its chairman Alan Bowkett have accepted a five-figure settlement from the News of the World over an article suggesting the club was in serious financial trouble.
The newspaper carried an apology last weekend and admitted that it had got the story wrong.
It said: “On 24 January, we said that Norwich City was on the brink of financial meltdown and could go into administration that week without major new investment.
“That was wrong because the club was not on the brink and they do not need new investment to stave off administration nor had they called in administrators.
“We apologise to the club and to its chairman, Alan Bowkett, for any distress caused by our error.”
The apology, settlement and a payment of legal costs followed Bowkett and the club launching a libel action against publishers News Group Newspapers over the story, which was headed “Canaries on Brink”.
Lawyers acting for the club had filed a writ at the High Court seeking an injunction and damages for defamation.
In the writ, Bowkett said he was hurt, distressed and embarrassed by the story, which appeared when it was capable of causing the club “potentially very serious instability.”
Legal proceedings were withdrawn following conclusion of the settlement.
Bowkett told the Norwich City website: “We are delighted that this matter has been sensibly resolved, that the truth has been established and that the club’s reputation has been restored.
“It was disappointing that the News of the World published the article in question, and faced with that article the club had no option but to stand up and protect its position. We are pleased the matter is now concluded.”
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