FORMER Redditch United manager Rob Smith has accepted an out-of court settlement from the football club after taking it to a tribunal for unfair dismissal and breach of contract.

Mr Smith claimed he was dismissed by former United chairman Rod Laight on April 10 last year, three days after a stormy meeting at which he claimed he was asked to slash players' payments or release a number of players.

The tribunal in Birmingham on March 14 had been adjourned for evidence from United after Mr Smith claimed the club was operating a tax "scam" by paying players expenses rather than wages to avoid accounting to the Inland Revenue.

A Railtrack claims manager of Calverley Road, Kings Norton, Mr Smith said at the time of his parting with the club, United had one player on a contract lodged with the Football Association and four or five on club contracts not lodged with the FA.

"You don't lodge, to avoid paying tax and National Insurance," he told the tribunal.

Mr Smith said players viewed their payments as wages and said one player had received £120 a week compared to another's £60 because he was more valuable rather than having more expenses.

When asked if he had paid exemptions, Mr Smith claimed that was his motivation for signing a two-year contract offered by the club to him, assistant manager Larry Homer and coach Paul Molloy.

"What you are saying is this was a scam to avoid payment of tax and National Insurance but it was one you were concerned about and wanted to change?" asked tribunal chairman Mr J Parkin.

"I was concerned and wanted to pay fully with proper deductions," replied Mr Smith.

He denied telling Mr Laight on April 7 he would have to consider his position, calling commercial manager Pat Cremin "a muppet" and slamming the clubhouse door.

Former assistant manager Larry Chambers, of Stoney Lane, Quinton, read a statement saying he understood the financial problems prompting the request to cut the playing budget arose from non-payment for works to improve the pitch in summer 2000.

He claimed Mr Cremin had admitted at an earlier hearing telling the press he and Mr Smith were verbally abusive and damaged property at the club and said it had affected their prospects of finding work at another club, citing Stourport Swifts as an example.

When asked about the expenses situation, Mr Homer said: "When I joined the club I asked about concessions and was told they had been advised the club was spared under guidelines."

United chairman Neil Pagett, present without legal representation, told the tribunal the club could not afford an outstanding legal bill.

He was unsuccessful in an attempt to postpone the hearing at the outset.