Chairman David Bernstein and general secretary Alex Horne said that the FA had followed incorrect processes when the manager was given an increase in pay.
The House of Commons select committee investigating the governance of football met at Wembley Stadium today, and as Horne defended the FA, he insisted that they had to act quickly to secure Capello’s services after rumours over his future after the World Cup.
“Nobody renegotiated Fabio’s contract unilaterally,” Horne said. “There was a contract through to 2012, for four years and within that contract there was a clause allowing either party to terminate for an amount of liquidated damages.
“We were coming under pressure for certainty in the run-up to the World Cup, with speculation of clubs coming in and it was agreed with a few people at the top of the FA, that we would delete mutually those clauses.
“Fabio also deleted his ability to walk away,” he added.
“Having qualified comfortably going into the tournament with that uncertainty, it was exactly the right thing to do but in hindsight that should have gone to the whole board.
“We have reviewed it internally and we hold our hands up to a corporate governance mistake.
“David Triesman, former FA chairman is not here. He was the senior member as chairman of the FA. He felt he had the authority to make that decision. It was only after he left that the board questioned that view.”
Lord Triesman’s successor, Bernstein, added: “If I’m chairman, it won’t happen again. It’s just proper organisation. Any contract of any size, any changes should go through the remunerations committee and then through the board. I will ensure proper governance.
“We need to fully comply with our own procedures even when we’re under pressure. You can’t over-estimate the pressures that arise over England from the media.
“You’ve seen that even in the last few days over fairly peripheral issues.”
Bernstein went on to defend Capello over the allegation in the media that he has ‘short-changed’ fans by opting to field a weakened team against Ghana at Wembley on Tuesday evening.
“The manager has to have the say on this matter,” he said. “He has a balancing act, over fatigue issues and the other competitions these players are playing in and the relationships with club managers.
“We’re looking for an improved balance of give and take,” Bernstein added. “What we need is to get the right players for the competitive matches. This is the manager’s decision and we’re in complete support of that.
“The England team is not an easy job. Fabio’s record, overall, is absolutely outstanding.
“In 18 competitive games he’s lost two, one of them a dead rubber. Unfortunately the other was in the World Cup. His record has been blurred by a very, very poor World Cup performance.”
Excerpt from:
English FA Admits Mistakes With Fabio Capello’s Contract