The Football Association has agreed to pay Gareth Southgate’s former agent, Terry Byrne, several hundred thousand pounds in compensation to settle a long-running legal dispute. Byrne sued the FA for about £3m in December at a time when he was still representing Southgate, but the Guardian has learned the matter was resolved before the end of this season after several private arbitration hearings. Byrne was suing for damages, claiming the FA breached its contract with one of his companies, 1966 Entertainment, by terminating a deal to manage England players’ commercial appearances while on international duty that was due to run until 2030. The dispute has rumbled on since 2018, when the FA sought an early termination from the 12-year deal given to Byrne, who previously represented A-list stars including Pelé and David Beckham before becoming Southgate’s agent when he was the England Under-21s manager. In an awkward situation for the FA, given Byrne represented the England manager, it was unable to agree severance terms with him and then cancelled the contract. At one point, Byrne’s relations with the FA were so bad that he and his staff were prohibited from visiting England’s players at St George’s Park. Byrne brought a legal claim against the FA, accusing it of “tortious interference” in 1966 Entertainment’s longstanding contract with England’s players, which was originally negotiated by Beckham, whom he also represented at one stage, on the squad’s behalf in 2006 before being subsequently extended in an extraordinary deal that was due to run until 2030. The Guardian has learned that Byrne refused several offers from the FA to settle due to his belief that he was owed millions and took the matter to arbitration, with several private hearings taking place this year. It is understood the matter has been resolved,with Byrne receiving substantial compensation. The FA and Byrne declined to comment. In an unrelated development, Southgate parted company with Byrne this year because of financial problems experienced by the agent after a disastrous property deal. Byrne’s holding company, Round World Group, borrowed £21m from the Topland Group last year to buy a six-storey building near Oxford Circus. Byrne had also lined up significant investment from fund managers Highams Saaz to help cover the loan, but the American firm withdrew triggering a financial crisis. In an attempt to keep up with the repayments, Byrne borrowed money owed to Southgate and other former England players, including Joe Cole and Glenn Hoddle. Byrne has yet to repay the money but is adamant he will. Byrne and Southgate were together for eight years and Southgate has yet to appoint a new agent.