Spanish newspaper Superdeporte had published audio of Mr Murthy speaking at a work dinner where he allegedly described Liverpool and Newcastle as"shit" cities while also threatening to vilify Valencia players in the media if they forced an exit.
"The board of directors of Valencia CF wish to address recent events which have regrettably affected the club's relationship with fans, government authorities and the community," the club owned by Singaporean billionaire Peter Lim said in a statement.
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