Derry City chairman Pat McDaid has announced his resignation
The chairman of Derry City Football Club has resigned along with three of its board members.
Pat McDaid said he would be stepping down along with Joe W Doherty, Peter Leonard and Francis Houston.
Mr McDaid said his relationship with the FAI had now "reached the point of no return".
The club's players also released a statement on Tuesday night which distanced them from what they described as the Derry board's "wrongdoing".
City were expelled from the League of Ireland after the FAI said they broke regulations by holding secondary, unofficial contracts with players.
A statement released on behalf of the Candystripes' players by the Professional Footballers' Association of Ireland, said that the events of the past week had come "as a major shock and disappointment to the players of Derry City Football Club".
"Until the allegations of 'dual contracts' were made very recently, no player was aware of the existence of a second document which contained different figures to the one which we had originally agreed.
"The position is that at the beginning of the contract period, each player was presented with a document on Derry City headed paper which contained income amounts which we each individually agreed with the club.
We wish to have nothing to do with this wrongdoing
Derry City players statement
"With only one exception, no player knowingly signed a second document.
"It now appears that, what the club had misrepresented to us as a blank registration form containing no figures, terms or conditions, was, in fact, a second document upon which different figures were subsequently entered and lodged with the league.
"The full terms of this contract were never made available to the players and we fully believed that the wages which we were being paid were disclosed to the league in accordance with normal practice.
"As soon as the players became aware of the situation, we have immediately agreed to set the record straight and we wish to have nothing to do with this wrongdoing.
"We are deeply distressed at this turn of events and we wish to distance ourselves entirely from the board's conduct."
The Derry players' statement came shortly after the announcement of the resignation of club chairman Pat McDaid and three other directors.
Their move left club vice-chairman Stephen McCarron as sole remaining member of the Derry board.
McDaid said that his decision was "an important step to ensure Derry City return to the League of Ireland".
"It's quite clear my relationship with Mr Delaney and the FAI has reached a point of no return," he said.
Another day of dramatic developments had included Derry goalkeeper Darren Quigley's defence of his decison to contact the FAI which apparently alerted the governing body about the alleged unofficial payments to over 20 Candystripes players.
Darren Quigley is currently on loan with Sporting Fingal
Quigley, currently on loan at Sporting Fingal, went to the FAI after not being paid by the Brandywell club.
"I didn't know I had two contracts - I had to go to the FAI. They've got to chase the money I'm owed."
Quigley denied that he had been the "whistleblower" in the saga.
He added: "I can't understand how any player can alert the FAI that they are on two contracts if they did not know they were on two contracts."
FAI Chief John Delaney claimed on Monday that Derry had withheld details of payments to players over a period of years.
He also warned Derry players to disclose details of their pay or face the prospect of not being registered "at home or abroad" next season.
FAI and League of Ireland officials claim to have uncovered evidence that over 20 Derry players held under-the-table contracts with the club.
Delaney added that in those circumstances, the club would not be awarded its 60,000 Euro prize money for finishing fourth in the league.
He also warned on Monday that Derry's players had until next Thursday to give full financial information about their pay to the FAI or the Player's Union.
Failure to give the information would result in the FAI not registering players at home or abroad next season, Delaney added.
Following news of the resignation of the Derry directors and the players' comments on Tuesday night, the FAI later released a statement saying that it accepted the "players' assurances that they were not personally aware of any financial irregularities at the club".
"The FAI also recognise the difficulties that have been created by the club in not paying players for the last eight/nine weeks at Derry City FC, and the impact that has on each player and his immediate family
"The FAI has also confirmed that it intends to send a delegation to Derry, on Thursday, with a view to beginning the process of returning the club to stability, now that the Club Chairman has accepted his untenable position."
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