Players' union executive Mick McGuire has been accused of telling lies by denying he had anything to do with former Crystal Palace manager Iain Dowie's move to rivals Charlton.

The accusation came from Palace chairman Simon Jordan on the third day of his club's £1million High Court compensation claim against Dowie for "fraudulent misrepresentation".

Jordan told the court that on May 26 last year - 10 days after he had agreed to release Dowie on the understanding that he would move to the north of England to be near his family - McGuire phoned to say he had nothing to do with the manager's decision to go to Charlton and he apologised for what had happened.

This was not true, Jordan told Mr Justice Tugendhat.

Dowie's counsel, Michael McParland, asked: "Are you saying you believe that Mick McGuire colluded with Mr Dowie in a fraud on you?"

Jordan replied: "I believe he had a conversation with me which was not founded on the truth. With the benefit of hindsight and having seen evidence from his diary, I am led to believe he was telling an untruth."

Crystal Palace, who won promotion to the Premiership under Dowie's command but were relegated after only one season, accuse him of breaking an "amicable" compromise agreement releasing him from his contract.

The Professional Footballers' Association, of which Mick McGuire is deputy chief executive, was involved in drawing up the agreement.

Dowie, 42, had a clause in his contract to the effect that, if he left to join another club, Palace would receive £1million compensation.

Jordan claims he agreed to waive that clause because Dowie had stated he wanted to move nearer to his wife and family.

But within days of leaving, Dowie was appointed manager of Charlton.

Under cross-examination today, Jordan said the agreement releasing Dowie was a "pragmatic compromise".

"He left the club at a very difficult time. It was a disaster for us to lose him at that time in a critical season, but you have to make the best of the hand you are dealt," he said.

He denied Mr McParland's suggestion that he was a "victim of your own Machiavellian attempt to get money out of Charlton".

Mr McParland said his insistence that he would have been just as angry if Dowie had gone to any other London club or anywhere south of Watford was "absolute rubbish".

"When he got to Charlton, you thought, in your Machiavellian way, 'great, I can get on the media and rant and rave and claim compensation'," Mr McParland said.

Jordan replied: "I don't need to go on the media to rant and rave - I can do that by myself.

"But there is nothing Machiavellian about me. This man (Dowie) lied to me and I asked my lawyers about it and they advised me what to do."

He pointed out that, although consideration was given to suing Charlton, no writ was issued against them.