Sullivan reveals why he let Bruce leave Birmingham

With Bruce likely to be unveiled on Tuesday as Wigan's new boss, Birmingham's co-owner insisted that the end of the Geordie's six-year stay would herald a potentially exciting new chapter for the club.

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Bruce has agreed a £2million-a-year deal to link up with Wigan chairman Dave Whelan, while Birmingham No 2 Eric Black is expected to quit within the next fortnight as Sullivan and his board begin the search for a new boss.

Birmingham's directors are taking legal advice and are confident they will receive the go-ahead to appoint someone on a permanent basis — irrespective of the stockholding held by Hong Kong businessman Carson Yeung.

They have already received a polite decline from former Tottenham manager Martin Jol but have other high-profile foreign bosses in their sights.

Sullivan, though, was keen to point out why Bruce is being allowed to leave. 'We priced Steve out of a move to Newcastle three years ago,' he said. 'In his contract there is a £7m compensation clause. The reality is that I don't know whether anyone would pay that.

'However, when we were approached by Dave Whelan, we felt — because we are nice people — that it would be morally wrong to stand in Steve's way again. We could have insisted on the £7m. But we have instead allowed him to leave for £3m.

'We could not foresee the effect that refusing him a chance to leave would have. We could quite easily have had a soured manager on our hands. In our position, that would have been courting disaster.

'Steve did a good job here. And he was well rewarded for it, contrary to what has been said in some quarters.'

Bruce's wages were almost doubled after Birmingham's promotion to the Premier League. His move to the JJB Stadium means a 25 per cent rise on his present salary.

Sullivan admitted that City sounded out Jol over the weekend. 'Martin thanked us for our interest but said it was too early for him to consider coming back into football such a short time after leaving Spurs,' he said.

'That is the type of coach we are looking at. Someone with a pedigree that will excite the supporters.'

Bruce, who walked out on Wigan to join Crystal Palace in 2001, has agreed a three-year deal and will be handed £15m for the January transfer window to reinforce the club's bid for Premiership survival.

Whelan will make his own priority securing the release of Black, the former Coventry manager, to re-form their St Andrew's partnership. In the meantime, Black is likely to be Birmingham's caretaker boss ahead of this weekend's clash with Portsmouth.

Whelan said: 'I understand Birmingham have got a short-term problem in that there is uncertainty in terms of who is going to own the club — if people want to buy the club, they should get on and do it.

'But we would like Eric Black to come as our assistant manager. I am confident we will get him. I understand he has got to stay there for a week or a fortnight. But he will be coming to us.'

Whelan, who fired Chris Hutchings after a seventh successive Premier League defeat left Wigan in the bottom three, failed to lure his predecessor Paul Jewell to come to the rescue despite a lucrative offer.

'When Paul decided he was not going to come back I was a little bit disappointed, but Steve Bruce is the guy we wanted,' said Whelan. 'I think he's a big loss for Birmingham and a big signing for Wigan.

'He'll be fantastic. He's one of the best young managers in the land. I'm delighted we've got him and he'll bring enthusiasm, knowledge and spirit to our team.

'Steve Bruce will make us a fighting machine again. He will instil the fighting spirit that has been missing this season and I can assure our supporters that we are not going down.'

Whelan has forgiven Bruce for quitting Wigan after just eight games to join Palace, who were then in a higher division, and will bankroll at least four signings including a partner for England striker Emile Heskey, sold by Bruce to Wigan.