The Magpies have released Eade, 56, from the final two years of his contract but have reacted angrily to the suggestion that the cost of replacing him will further increase their six-figure AFL football department tax. His departure leaves Collingwood searching for its third head of football in 18 months, with St Kilda also in the market for a football boss.

Eade will depart the club immediately and move north after a short break with his family, officially taking over as Suns' coach on November 17. Eade's wife Wendy will remain in Melbourne next year while the couple's daughter Meggan completes year 12. Eade has been the No.1 target of the Suns for some weeks with the club determined its talented list required a proven senior coach.

The official announcement of Eade's appointment was delayed on Tuesday by sensitive negotiations between Suns chiefs and Collingwood CEO Gary Pert who is overseas, but remained determined to control the news of Eade's departure. While the AFL refused to buy into McGuire's compensation claim, the Magpies received strong support from Port Adelaide, which last November lost its coaching director Alan Richardson to St Kilda.

The Richardson appointment by the Saints came after that club, like the Gold Coast, sacked a contracted senior coach. "I believe there's a strong argument for it," said Port chief Keith Thomas. "When clubs act this late - it's after the trade period - you really are inconveniencing the other club."

McGuire, who confirmed his club also faced being slugged extra money in its football department tax bill by the AFL, told Fairfax Media: "We're doing enough subsidising at Collingwood. We subsidised Brisbane with the equalisation money and they use it to go after our gun players. We're not in the business of subsidising other club's new coaches.

"Rodney's a wonderful person and we won't stand in his way. We wish him well and we understand he did not put his hand up for the job. Gold Coast came to him. But he remains in contract and everything's negotiable.

"Our expenses in hiring and fulfilling his role would need to be compensated. These clubs who sack their coaches when they are contracted and come out of nowhere and disrupt our football department plans, which were well in place ... put it this way, we look forward to having a chat with a few people."

Port Adelaide levelled a $150,000 compensation claim at the Saints, who finished up paying Port just $20,000. Thomas said Port then forwarded about $15,000 of that amount to the Gold Coast after the Power in turn poached Shaun Hart to replace Richardson.

McGuire denied Eade's departure signified an exodus from the club, pointing out that Eade had succumbed to his coaching passion despite believing that his senior coaching days were over. Eade last year recommitted to the Magpies on lucrative terms, which involved a trigger clause that could have held him at Collingwood until the end of 2017.

Eade is understood to have settled for a three-year contract with the Suns involving significant bonus payments should the club achieve success. The club's chairman John Witheriff has been publicly bullish regarding his young club's premiership ambitions, but believed the talented list required a "grey-haired" mentor to take the next step.

Now the club has replaced Guy McKenna, it must turn its attention to securing its champion captain Gary Ablett who comes out of contract at the end of 2015. Ablett and his manager Liam Pickering are pushing for a three-year contract extension, which would tie the dual Brownlow medallist to the Suns until the end of 2018.