Apparently Watford may take City to arbitration for the 'loss of opportunity' regarding the Sancho sale, and they have written to the FA.
From the Times (but you have to register to read the whole thing).
https://www.thetimes.co.uk/edition/sport/watford-could-seek-compensation-from-manchester-city-over-jadon-sancho-deal-787j0vr9j
"Watford could take Manchester City to arbitration for a “loss of opportunity” regarding the sale of Jadon Sancho following allegations that City made an illegal payment to his family. The Times understands that the club have written to the FA asking to be kept informed about its investigation into whether City made payments to Sancho’s family and his agent, Emeka Obasi, before the then 14-year-old left Watford’s academy to move to the Etihad Stadium four years ago."
Watford could take Manchester City to arbitration for a “loss of opportunity” regarding the sale of Jadon Sancho following allegations that City made an illegal payment to his family. The Times understands that the club have written to the FA asking to be kept informed about its investigation into whether City made payments to Sancho’s family and his agent, Emeka Obasi, before the then 14-year-old left Watford’s academy to move to the Etihad Stadium four years ago.
Watford have not made an independent complaint to the FA, but have asked to be kept abreast of developments and any conclusion as the outcome could materially affect them. If City’s alleged illegal payments are proven they would constitute a multiple breach of FA rules, which may have cost Watford tens of millions of pounds. The club are reserving the right to take City to arbitration. Both FA and Fifa rules state that agents are not allowed to represent players until the year in which they turn 16, while it is prohibited to make any financial inducement to a young player’s family. Section K of the FA Rules provides that any dispute between two or more “participants” shall automatically be referred to and resolved by arbitration under the FA Rules. The revelation of Watford’s letter may increase tensions in the boardroom when the two clubs meet at the Etihad Stadium tomorrow.
Watford received just £200,000 in compensation when Sancho joined City in 2015 as part of a set tariff determined by the Premier League’s Elite Player Performance Plan — £25,000 for each year he spent at the club’s Category 2 academy — but he is now valued at over £100 million. The 18-year-old left City for Borussia Dortmund for £8 million in 2017 and after making a huge impact in the Bundesliga has established himself in Gareth Southgate’s England squad, with Manchester United and Paris Saint-Germain both considering making a bid for him this summer.
Watford are prepared to take City to arbitration if it is proven that Sancho’s decision to leave them was influenced by an unlawful payment from another club. The Times yesterday revealed the existence of City’s internal document from 2014 proposing to make a payment of £225,000 to the player’s family for “family support”. It is not known whether the payment was made. German magazine Der Spiegel have previously alleged that City paid Sancho’s agent, Obasi, £200,000 connected to the move, but tried to conceal the payment as an agreement for him to work for the club as a scout.
The FA has confirmed they are investigating the allegations, but declined to comment on Watford’s letter. City refused to comment on the specifics of the Sancho case, but issued a statement yesterday saying that accusations of financial irregularities were “entirely false”.