EXCLUSIVE: SECRET documents and a bombshell email have lifted the lid on behind-the-scenes inducements offered to Essendon and James Hird as the AFL worked frantically to pressure him to accept drugs scandal penalties.

The Herald Sun tonight will reveal new details in the Essendon saga.

Earlier today, it was revealed that days before the August 26-27 AFL Commission hearing was due to consider penalties, deals were being proposed by Australia's top government-appointed sports official, John Wylie.

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A document emailed by Wylie to Little on the night of August 23 outlined potential settlement terms as the crisis threatened to spill into the Supreme Court.

Wylie, the Australian Sports Commission chairman, suggests: "Hird as senior coach takes responsibility for the inadequate governance and oversight within the club's football department that gave rise to this situation.

"It is however acknowledged …. to the best of the AFL's knowledge and belief, Hird did not promote or encourage an unethical environment within the club; Hird has not brought the game into disrepute.

Who's who - the men behind the offer

"In the totality of the circumstances, the AFL will impose, and Hird will accept, a 12-month suspension from all coaching duties."

In a separate document presented to Hird on August 23, amid negotiations between Wylie and Little, the Essendon coach is offered "an outstanding career development opportunity" in return for dropping his legal action against the AFL.

media_camera James Hird leaves his Toorak home this morning. Picture: Nicole Garmston

Offers of "no player sanctions'' and "no double jeopardy'' despite an ASADA investigation are discussed.

Wylie said last night: "I was requested by both Paul Little and (AFL Commission chairman) Mike Fitzpatrick, in the first instance by Paul, to assist in communications between the AFL and Essendon at a time when ­direct communication between them was difficult."

DEMETRIOU DENIES DEAL

On 3AW this morning, Mr Demetriou said the sanctions against Essendon, Hird and other club officials were the toughest in the history of the sport.

"There's no deal. The deal is what was announced on the day," he said.

Timeline: How it all unfolded

Saga: What they told us

Mr Demetriou added that there were no inducements offered by the AFL.

But he said while the AFL Commission was not permitted to have dialogue with Essendon, he acknowledged chairman Mike Fitzpatrick's friend Wylie, who was talking to Little, may have had dialogue with the Commission boss.

He said he was not privy to any negotiations as a commissioner.

media_camera Essendon coach James Hird.

Mr Demetriou also said the terms of the settlement included stipulation that Hird was not paid by Essendon amid suggestions he is potentially being paid while on suspension.

"He is not being paid. Part of the sanction is that he is suspended without pay from the Essendon Football Club," he said.

But that statement was denied late today by spin doctor Ian Hanke, who advised Hird's legal team.

Hanke said the documents outlining Hird's penalty make no mention of the coach being suspended without pay.

"It gobsmacks me a little," he said.

media_camera How the Herald Sun broke the story.

"I don't know why Mr Demetriou has said that but it's just not spelled out in any way, shape or form in the actual deed of arrangement that was reached between the AFL and Hird.

"I don't know particularly what Mr Hird's arrangements are with the Essendon Football Club but ... (it has been reported he is being paid) and no one has denied this at all except Mr Demetriou, who said, I think rather misleadingly, that it stipulated in the deed that he wasn't to be paid and that just isn't the case."

Mr Demetriou insisted there was nothing inappropriate about conversations held before the Commission hearing.

He issued a statement to AFL clubs today, posted on the afl.com.au website (READ MORE).

Essendon chairman Paul Little has refused to answer whether Hird is being paid by the club for the 2014 season.

media_camera Paul Little leaves the Essendon AFL club rooms.

LITTLE, HIRD WON'T COMMENT

When asked by the Herald Sun today, Little said: "No comment."

In a statement late today, Essendon said: "In relation to media inquiries regarding James Hird's pay, Essendon Football Club will not be commenting on issues covered by confidentiality agreements.

"Essendon Football Club will not make any further comment on this matter."

In the wake of this morning's Herald Sun revelations, AFL CEO Andrew Demetriou vehemently denied Hird would be paid during the term of his suspension, which started in August.

READ MORE: Is Hird being paid?

Hird emerged from his Toorak home at 6.30am today, unwilling to answer questions.

Dressed in a suit and tie, he got into his car and drove away without making comment.

Prime Minister Tony Abbott has also weighed in, saying fairness in sport is key as the fallout from the latest Essendon revelations continues.

PM WANTS CLEAN AND FAIR SPORT

media_camera Coach James Hird during Essendon training at Windy Hill.

Responding to the Herald Sun story at a cricket event in Canberra, Mr Abbott said: "It's important that sport is clean and fair."

He made the quick comments after announcing Brett Lee will be captain of the Prime Minister's XI team to play England in Canberra on January 14.

But the PM would not be drawn on whether a public inquiry into the Essendon matter was required or whether people could have faith in the integrity of sport following the exposé.

"I'm not going to comment on Aussie Rules today," he said.

"I've made a few comments about cricket and I'm going to just be a one-sport person today if that's okay."

While this morning, new Bombers recruit Paul Chapman said the supplements saga won't seriously impact the team next season.

In response to the Herald Sun, AFL spokesman James Tonkin said last night: "Numerous discussions took place at different levels in a bid to resolve the matter as quickly and appropriately as possible."

THE OFFER

An offer to allow Hird to receive a full salary while serving a 12-month ban was also discussed.

The document presented to the Essendon coach reads: "Charge of bringing game into disrepute dropped. 12 months suspension starting now.''

It states Hird could also keep his place in the AFL Hall of Fame and be "acknowledged by the AFL as a legend of the game".

In exchange for the offers, the document says Hird therefore "withdraws all legal action immediately".

A string of revelations to be published in the Herald Sun and The Australian over the coming days raises major perception issues surrounding the integrity and the outcome of both the drugs probe and the AFL Commission hearing.

Mr Demetriou said on August 7: "To suggest the AFL Commission and the people on the commission would somehow predetermine an outcome is offensive and just plain wrong."

It is not known if all AFL commissioners were aware of Wylie's involvement or of proposed inducements at the time they were asked to sign off on the final resolution against Essendon and its four officials on August 27.

Little last night confirmed the talks with Wylie. He said: "John Wylie is a longstanding personal friend and we discussed possible strategies for settling the dispute.''

Hird is understood to have rebuffed the inducements put on the table on August 23, only to accept a 12-month suspension four days later under fierce pressure and fearing that he would be banished from the game and his club.

There were also discussions about sending Hird to Oxford University in England, where both Wylie and Fitzpatrick are Rhodes scholars.

Hird later independently applied to attend the exclusive Fontainebleau business school in France, passing an entrance exam in Singapore. He has just returned from his $120,000 MBA studies.

Sources have questioned why Wylie as chairman of the Sports Commission - which works with the Australian Sports and Anti-Doping Authority to fight drug cheating and which promotes integrity in sport - was drafted into pre-hearing bartering with the approval of AFL Commission chairman Fitzpatrick.

Proposed penalties for Mark Thompson, Bruce Reid and Danny Corcoran are also stated in correspondence, with Thompson cleared to coach again in 2014.

A club fine of $1.5 million and the deduction of 12 premiership points "so as to miss the finals" are also documented. The club was ultimately fined $2 million and relegated to ninth on the AFL ladder.

Hird and Fitzpatrick did not return questions from the ­Herald Sun.

- with Ashley Argoon, Jessica Marszalek