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Tough tackling Bailey has become a fans favourite after many sterling displays up and down the right flank this season, but has recently spoken out against the clubs policy of holding off on new contract offers until the end of the season.
Bailey was widely expected to stay at the club despite his outburst, and his move will be one met with a great deal of remorse by Imps fans. However Macclesfield manager Brian Horton has allegedly doubled the offer made by City, and for a player approaching the twilight of his career the money was too good to miss.
City boss Keith Alexander gave his usual unflustered comments on Baileys transfer. "The lad has done superbly for me and he's looking after his family, which you just can't knock him for," said Alexander. "He had an offer from Macclesfield which was double what we were offering and we can't compete.
"I think he's a great player and a great lad. I wish him all the best."
Bailey could be one of four players leaving the Bank this season as Kevin Ellison is reported to be interesting newly promoted Chester City who can also offer more money than The Imps, and Simon Yeo also searching for a little more money. Ben Futchers imminent exit has been well documented.