Chris Coleman was sacked to take advantage of a clause in his contract that saved the new Sunderland regime £1.7million, according to a report today.
The Sun claim that Coleman was given just £300,000 compensation after his surprise dismissal on Sunday.
The Welshman, believed to be on around £700,000 a year, had said he would be prepared to take a pay cut to stay at the club next season.
However, it is reported he would have been entitled to £2million in compensation had he been dismissed after the takeover by an international consortium fronted by Stewart Donald went through.
Coleman was given the bad news by chief executive Martin Bain, who also looks set to leave the club once Ellis Short's sale goes through.
Donald is now drawing up a shortlist of managers to replace Coleman, with Chris Wilder, Michael Appleton, Paul Cook and Mick McCarthy among the early frontrunners with bookmakers.
The Echo understands, however, that there are other names under consideration.