Simpson offered all the old staff a position including Kelly but he made it absolutely clear if he was not offered the top job he would be off. Billy Davies immediately came in for Kelly but as he was under contract compensation would have to be paid which Derby refused to do - even though they had previously paid for Davies. The only other option was for Kelly to leave like Balderstone and the other backroom staff. Kelly refused to do this as he wanted compensation from the club.
The matter became deadlocked bordering on the ridiculous due to the stubborn nature of Kelly who will now leave the club's payroll and will expect to join old chum Davies at Derby.