James Hird will be paid his $1 million annual salary in a lump sum

JAMES Hird will be paid his $1 million annual salary in a lump sum in a farcical resolution to the AFL-Essendon pay dispute.

JAMES Hird will be paid his $1 million annual salary in an immediate lump sum in a farcical resolution to the AFL-Essendon pay dispute.

The Bombers and the AFL on Friday night agreed to the deal to end their stand-off - and avoid potentially damaging court action.

It came a day after AFL boss Andrew Demetriou warned the club it would be punished for continuing to pay the coach while he was suspended.

The resolution was ridiculed by Bombers insiders, who said it was a blatant attempt by the league to settle a dispute that had deeply embarrassed Demetriou.

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"This is a farce. It's an absolute joke," a club figure said.

"How can the AFL think this is any different to paying his salary?"

The pay war was triggered by a series of revelations in the Herald Sun last week surrounding secret inducements offered to Hird in the days leading up to his suspension for his role in footy's doping scandal.

News_Image_File: James Hird will be paid his $1 million annual salary in full. Picture: Nicole Garmston

Demetriou said two weeks ago he would "go to his grave" believing Essendon was not paying Hird during the term of his 12-month ban.

Within hours, the Herald Sun revealed that Hird was, in fact, being paid $1 million to sit on the sidelines.

Wages owed to Hird from today until December 31 next year will now be paid by New Year's Eve.

Essendon chairman Paul Little said the stalemate had been mutually resolved.

"To settle this impasse, the Essendon Football Club has resolved that it will pay James Hird in advance to cover the 2014 year, consistent with Hird's employment contract obligations," Little said.

News_Module: James Hird timeline

"This also meets the implied terms of the deed of settlement" that Hird can't be paid for 12 months, Little said.

"The AFL has accepted the Essendon Football Club's position that James will not be paid in 2014, and equally the AFL have accepted that the Essendon Football Club has the right to make payments to James Hird in the 2013 year as it sees fit," he said.

An AFL spokesman said: "The AFL and Essendon have now both accepted this matter is concluded to both of their satisfaction."

The AFL admitted last week nothing in Hird's agreed settlement with the league stipulated he could not be paid.

News_Module: Essendon timeline

Outgoing World Anti-Doping Agency boss John Fahey told the Herald Sun he expected the Bombers to be hit with formal doping charges.

"There is a distinct likelihood infraction notices will be issued in due course," he said.

"When that is I don't know.

"I hoped it would be before Christmas but I can't say whether it will or it won't."

There was no guarantee players would be spared.

"Under the UNESCO convention, ASADA must act without fear or favour and ­independently," he said.

News_Module: Bombers in crisis timeline

"No sport can tell it what it can and can't do."

Fahey branded the AFL a "sacred cow" and said WorkSafe should be investigating Essendon for "obvious" breaches of workplace safety.

The Herald Sun understands ASADA has this week interviewed key figures involved in the supply of supplements to the Bombers but are yet to speak to former club sports scientist Stephen Dank.