Penrith have paid Wests Tigers a $250,000 fee as compensation for allowing Ivan Cleary to be released from the final two years of his contract.

Cleary will return to the foot of the mountains on a five-year deal, after initially agreeing to return on a three-year contract from 2021-23. That move appeared to make Cleary’s tenure at Concord untenable, although the Tigers felt they were entitled to restitution and weren’t prepared to budge until they found a replacement.

It was a game of brinkmanship from both parties, but in the end the joint-venture outfit negotiated what it believes is a favourable result. Knowing Penrith’s retention of halfback Nathan Cleary was largely contingent on his father coaching him, Fairfax Media can reveal the Tigers negotiated a compensation payment worth a quarter of a million dollars to settle the matter.

Brinkmanship: The Tigers put a $250,000 price on Ivan Cleary's services after he signed with Penrith. Credit:NRL Photos

Having done so, the club then announced the appointment of Maguire. The premiership-winning former South Sydney coach will join the club on a three-year deal worth $2.5 million, some of which could be subsidised by the Panthers payment. For Penrith, it's an additional cost on top of paying out the final two years of sacked coach Anthony Griffin's contract.