A point no-one has mentioned is Bennell's source of alternative income. It's said he had a nice house, wore designer gear, drove a flash car, had a Puma & other exotic animals....
I can't find where it says he came from money or had a job, & I can't see running a kids' football team as being that lucrative either.
We know it was illegal for clubs to have youth teams, so it's reasonable to assume Bennell was unofficially on City's payroll, but it would have been accounted for as scouting expenses.
This was probably the way clubs got around the FA rules so they could ring fence the best local youth talent. Bennell must have been getting a fantastic wage from somewhere to fund his lifestyle, club kits & the several football trips abroad & foreign holidays he took on a seemingly regular basis, so it's not unreasonable to assume this came unofficially from City.