FORMER York City midfielder Ben Godfrey's potential £3million move would secure a six-figure sum for his old club.

It has been reported that Godfrey, 20, is believed to be the subject of bids in that region from Premier League outfit Crystal Palace and Championship pair West Brom and Swansea, whose new manager is former City left-back Graham Potter.

The Minstermen sold Godfrey to Norwich in January 2016, but he caught the eye of the afore-mentioned trio during last season's loan spell with Shrewsbury, who he helped reach the Football League Trophy and League One play-off finals at Wembley.

City are understood to inserted a sell-on clause in the region of 10 per cent into the deal that saw Godfrey leave for Norfolk and sporting director Dave Penney believes the possible windfall illustrates the importance of the club's continued commitment to youth football in the face of funding problems.

"People have been moved on to bigger and better things that have come through the system here," Penney pointed out. "Ben Godfrey might move again, so it’s certainly worked well for the club.

"The last value I heard was £3million and we have a sell-on clause that will benefit us if he is sold. Young Ryan (Edmondson) also made his debut for Leeds and we have kickbacks in that respect, as well as the pre-season friendly they are playing here."

By leaving the Elite Player Performance Plan system, however, City will not be entitled to a compensation fee if any of their players aged 16 or under are enticed away by another club.

Explaining that change, Penney said: "We have lost some players to other clubs and that will happen because, having left the EPPP Programme, we cannot sign players until the age of 17, so have no hold over them. But that doesn’t mean they won’t come back here.

"Not every parent wants to take their child to Hull twice a week. Here, from 16 down, we’re keeping things running with parents contributing financially every month and they have been brilliantly supportive."

Penney also argued that last season provided an example of how City can offer young hopefuls a first step on the professional ladder long before they might be given an opportunity elsewhere.

"People can get in the first team here but, if you go to somewhere like Hull, can you get in the first team, because the fall-off rate is ridiculous for scholars," the ex-Doncaster boss reasoned. "Flynn McNaughton, Vinnie Steels and Ryan Edmondson all made their debuts here last season, so we have that pathway.

"If clubs around us are releasing players at 15 or 16, we can also be their exit strategy, as a lot of players develop later."

Elsewhere, released attacker Aidan Connolly has joined Scottish first division side Dunfermline.