Former Blackburn manager Henning Berg has been awarded £2.25m in
compensation after winning his claim against the club at the High Court
in Manchester.
The 43-year-old was
sacked in December,
just 57 days into a three-year deal.
Rovers argued managing director Derek Shaw acted without the authority of owners Venky's to sanction the compensation terms agreed with Berg as part of his contract at Ewood Park.
Blackburn have also been ordered to pay £20,000 in interim costs.
The Championship club wanted to withdraw their admission that they were liable to pay Berg the full amount for the remainder of his contract, but their claim was dismissed by a judge on Monday.
Berg received £562,500 from Blackburn in February and the Norwegian will now be paid a further £843,750 - the outstanding net figure he is due.
The court heard how, at the time of the first payment to Berg, Rovers had said they were unable to pay Berg the whole sum immediately because of "cash flow difficulties", which they hoped to rectify by seeking an advance of their parachute payment from the Premier League.
During the hearing, Blackburn's own lawyers admitted that the ongoing power struggle between Shaw and the Indian family was a "shambles".
Henning Berg's Blackburn reign
31 October: Berg is appointed as successor to Steve Kean, signing a three-year contract at Ewood Park, and takes charge with Blackburn fifth in the Championship3 November: Takes charge for the first time but Rovers lose 2-0 at Crystal Palace
17 November: Achieves his solitary victory as Blackburn boss, winning 4-1 at Peterborough
7 December: Berg reveals concern at Blackburn's poor home form after 4-1 defeat by Championship leaders Cardiff City
12 December: Global advisor Shebby Singh reveals to BBC Radio Lancashire that he and Berg have yet to discuss January transfer targets
27 December: Berg is sacked after a 1-0 defeat at Middlesbrough - Blackburn's third straight loss. He leaves after just 10 games and 57 days in charge, with Rovers lying 17th in the table
BBC Sport learned earlier this month that former Preston chairman
Shaw had been asked to stay away from Ewood Park
while the club carried out an investigation into Berg's appointment and his subsequent pursuit of compensation.
This was refuted in a statement released on Blackburn's website on 9 April, in which the club said
Shaw had the "complete backing and support"
of the owners.
However, it was confirmed in court that this was not the case - Blackburn's lawyers said the two parties are in "direct conflict" - and the statement has since been removed.
Blackburn have had five different managers this season. Steve Kean began the campaign in charge but was "forced to resign" in September, and his assistant Eric Black has a month-long spell in temporary charge before Berg, a former Rovers defender, was confirmed as Kean's permanent successor on 31 October.
After Berg was dismissed on 27 December, reserve team boss Gary Bowyer was placed in control of first-team affairs.
Michael Appleton left Blackpool in January to become Blackburn's third permanent manager of the season, but his reign lasted just 67 days before he was sacked in March, leaving Bowyer to take caretaker charge again for the remainder of the season.
Rovers, who dropped out of the Premier League in May 2012, are still not mathematically guaranteed survival in the second tier with one game of the season still to play.
However, a second consecutive relegation is extremely unlikely as it would take a heavy defeat at Birmingham on Saturday and four other results elsewhere to conspire against Rovers for them to end up in the bottom three.