Fabio Capello will remain England manager, despite dismal World Cup performance

By Liz Hull for MailOnline
Updated: 19:16 EDT, 2 July 2010

England's defeated manager Fabio Capello yesterday won the battle to keep his job - because the Football Association can't afford to sack him.

Despite having overseen England's worst ever World Cup defeat, the 64-year-old could have pocketed a £12million payout if the FA let him go.

To the disgust of many fans, they have agreed the Italian can stay in his £6million-a-year post and lead the team into the 2012 European Championships - even after presiding over an abysmal performance in South Africa, which culminated in last Sunday's 4-1 defeat by Germany.

News of Capello's survival was greeted with derision by supporters and former players who mounted a backlash against the FA.

But some commentators have claimed that the FA was left with little choice because, just four weeks before the World Cup began, they made a controversial decision to delete a clause in Capello's contract which would have allowed either party to terminate it.

Within hours of England's exit, Capello made it clear he had no intention of graciously falling on his sword, and the FA realised they would be forced to pay him millions of pounds in damages should they decide to fire him.

Paul Merson, who won 21 caps as a midfielder for England in the 1990s, said he was 'not happy' about Capello keeping his job. 'Why would you keep the same person on? Keep on doing the same things and you'll get the same results, nothing will change,' he said.

Fans flooded football forums with messages attacking the England coach.

One supporter, calling himself Salford Kev, said: 'I'm not surprised. The FA would rather the team fail for another two years than pay the compensation. Capello is even worse than (Sven Goran) Eriksson and that's saying something.'

Another added: 'They don't want to get rid of him just yet cuz (sic) it would cost them too much. They were idiots when they altered his contract just before the World Cup so they have only themselves to blame.'

While some fans argued Capello should be given another chance, most said they would have preferred to see him get the sack.

'He went back on his pledge to take no players who were in any way unfit or not playing for their club's first team regularly, and strikers that weren't scoring for their clubs,' said one fan, known as Kitty.

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Last night, Capello said he was 'more determined than ever' to succeed as England manager.

He added: 'It is very important we use the disappointment as a motivation in the future. I can assure the fans I am now fully focused on our European qualifying fixtures, starting with the friendly against Hungary in August.'

John Terry, Frank Lampard and Steven Gerrard have almost certainly played in their last World Cup, and Capello vowed to freshen up the team with younger players - a strategy which appears to be working for the Germans in the current World Cup.

Sir Dave Richards, chairman of the four-man board of Club England, which voted unanimously to keep Capello in the role, insisted he remained the 'best man for the job', adding: 'We are confident Fabio will benefit from his first international tournament experience and this will undoubtedly make us all stronger for the Euro 2012 campaign.'

Former England captain Alan Mullery last night said the size of a potential pay-off undoubtedly helped the former AC Milan and Real Madrid coach keep his job.

Mullery, who won 35 caps and played in the 1970 World Cup, said: 'It didn't surprise me at all. If they had offered him the money for the two years he has got on his contract he probably would have gone, and quite willingly.

'But I don't think the FA have got that sort of money. I think they would rather keep him.'