The board, under new chairman Peter Summers, decided against sacking the coach given the magnitude of the move, the fact the club had not yet appointed a new chief executive and the reality that Watters had one year remaining on his contract. While the Saints have constantly denied suggestions of a seven-figure loss in 2013, the club will lose significant money.

Watters' relationship with his senior players has been an ongoing issue this season as his working partnership with football boss Chris Pelchen has continued to hit serious hurdles, partly due to a clash over authority.

A number of attempts to mediate between Watters and Pelchen have taken place over recent weeks with the Andrew Thompson-led football review underlining Pelchen's seniority, and Watters instructed to report directly to his departmental head.

Despite the fact that Watters' tenure was placed under immediate threat, the coach remains confident he will receive a new contract before the start of next season.

The senior coach's push for an extended deal began during the season after he controversially made public the fact St Kilda had moved into rebuilding mode. That claim came after the club's round-two loss to Richmond, blindsiding the players and the executive, including Nettlefold.