Explained: Where is the Enzo Maresca compensation issue between Manchester City and Chelsea

Enzo Maresca remains lined up as Manchester City's next manager, but the only obstacle to an official announcement is the ongoing compensation dispute between City and Chelsea.

Maresca left Stamford Bridge on New Year's Day with three-and-a-half years left on his contract and did not ask for any severance pay when he resigned. Because of that, Chelsea have the right to request compensation from City for the services of the Italian coach.

The dispute has been brewing since May, with lawyers for both sides initially handling the negotiations before senior Chelsea and Manchester City executives stepped in to push the talks forward—a sign that both parties are seeking a resolution before the summer transfer window opens on June 15.

Despite lengthy talks, City's confidence that Maresca will be their next manager has not changed. Khaldoon Al Mubarak asked supporters to be patient and noted that the club went through a careful and structured process in selecting Pep Guardiola's successor.

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According to Sam Lee of The Athletic, Maresca is still set to replace Guardiola, and the final details of a compensation package for Chelsea are still being worked out. At the same time, the Italian coach is in contact with sporting director Hugo Viana regarding transfer targets this summer and is in regular communication with the various departments of the club as the foundation is laid before the formal signing.

This situation shows that Maresca is already working in a quasi-managerial capacity at City even if his role is not yet formalized — a move by the club to not lose momentum in the market while the compensation issue is settled.

Transfer window plans are said to be detailed, including the need to make major additions to midfield following the departure of Bernardo Silva, and in defense as Ruben Dias has links to Real Madrid and a long-term replacement is needed for John Stones. City's interest in Nottingham Forest's Elliot Anderson—who has reached a third offer—and Newcastle's Sandro Tonali as key midfield targets have previously risen.

It remains variable whether the compensation dispute will be resolved before the end of the FIFA World Cup, but with Maresca already operating as de facto manager, it could be said that an official announcement seems more of a formality than an open matter as pre-season approaches.