City at war

City immediately hit back at allegations they had threatened to report Shaw to the police for theft and had failed to honour his contract, describing the claims as "grossly misleading" and "inaccurate".

Ex-manager Terry Dolan also said today he wanted to reach a "fair" settlement over the remainder of his Bootham Crescent contract but is not hopeful of reaching an agreement.

Dolan and Shaw, made redundant at the end of last season as part of sweeping cost-cutting, were responding to an Evening Press story which revealed keeping them on the wage-bill was expected to cost City £72,000.

Shaw claimed today the club had not honoured his contract, under which he was entitled to six month's pay.

Said Shaw: "One minute the club are publicly telling everyone that they will honour in full the terms of my contract, the next it demands the return of my company car, which I was entitled to under my contract of employment, and does so threatening to report me to the police for car theft and cancel my insurance unless I complied.

"Needless to say, under those threats, I had no alternative but to comply."

In a statement, the football club said: "Mr Shaw's comments regarding the car are grossly misleading.

"The club no longer provides company cars to any employees and has, in compensation to each employee who had a company vehicle, offered them a cash equivalent increase in their salary.

"Mr Shaw was no exception to this general policy and has been paid a cash equivalent as have other employees."

Shaw said City had now terminated his contract but reckoned he had received only half of his entitlement.

Insisting he wanted the club to survive, Shaw said: "However, I do not think that any fair-minded person would consider that the club's survival should come at the cost of failing to honour the contract, which was not exactly over-generous in the first place, of a loyal employee.

"My solicitors are still striving to reach an amicable settlement but currently no progress has been made on that front. Legal action is sadly beginning to look inevitable."

The club described Shaw's claims regarding the termination of his contract as "grossly inaccurate and misleading".

"The club does not consider it appropriate to enter into a public slanging match with Mr Shaw in matters that would normally be regarded as confidential between employer and employee.

"It is always difficult when tough financial decisions have to be made for the long-term benefit of the football club and its employees.

"We are sure our supporters understand why such decisions had to be made in view of the losses we sustained in the first three months since the Trust's take-over.

"If we had taken no action, it would have been at the expense of the football club, the employees and the supporters."

In a statement issued through his solicitor, Dolan admitted he was still receiving a basic salary from City but said he had not received "any pay-out, let alone one for £72,000".

"I do live in hope that a fair settlement can be reached with York so that I can get on with my life in football and be released from all this gardening.

"Currently, however, things do not look too hopeful on that front and whilst the time is not right to discuss such matters publicly it will no doubt make an interesting chapter in a book I keep promising myself to write which goes under the provisional title 'It Shouldn't Happen to a Football Manager'."

In their statement, City said the £72,000 figure included in their accounts was for what they anticipated spending on the duo's redundancy over the year.

It said: "Mr Dolan clearly does not understand financial accounts. The provision made in statutory accounts was to provide for his basic salary, other benefits and employers' national insurance for the remaining period of his contract.

"We are not prepared to disclose the precise terms of Terry Dolan's contract as we regard this as a confidential matter.

"We are disappointed to note that before making what could be regarded as inflammatory comments, Mr Dolan has not taken care to understand how a set of statutory accounts is compiled."

Updated: 10:01 Saturday, September 27, 2003