There is absolutely no good reason why he would go Arsenal at this stage of his career.
He knows how highly rated he is within the organisation, money will be no problem, he'll get excellent coaching especially when he joins the first team squad regularly for training sessions and is currently playing with several talented lads of similar age group so he doesn't have the pressure of being the targeted player that opponents want to kick off the park in every game.
The decision to come up North was his and his family's to enable him to concentrate on his career with no hassle from bad influences where he grew up.
Of course he will get pissed off if he never gets close to the first team in a year or two's time but now is not the time for him to consider leaving.
These rumours are undoubtably based on truth, as every club in the country will want Sancho, but any of us could write a similar piece without even researching it & be more or less correct. All the clubs will be sniffing around all of our best young players. It's what they do. It's unlikely he'll go anywhere.
I don't think there is CURRENTLY any problem whatsoever with Sancho 'not getting game time' or Diaz, or any of the younger kids, they haven't really been ready for it, they are/were too young & have no real argument they merit it, 'yet'.
The problem is the fact that most of the older kids in their position, have resisted any poaching, stayed at the club & been 'rewarded' by not even getting a sniff of the first team when many did, absolutely, merit it. The 'new' academy, has been open a few years now, so kids & their parents have actual history & timelines, to judge how other kids were treated by the club & whether continuing with City is the best option for them.
I think it is, because I believe (perhaps misguidedly but we'll see) that Pep is a vastly different animal to Pellegrini & that he will be actively trying to get as many kids as possible, onto the pitch in the first team. He has to balance it with prioritising success, but he will try, I believe.
If it doesn't happen though, we will lose a lot of the best kids to our rivals, some at 16 & some won't even sign in the first place. The next few years will decide whether our academy succeeds or is overtaken by our rivals, who are all frantic about catching us & WILL play the best kids in their teams, even if it's only for 20 mins.
I have been going to 'kids' games & training sessions on & off since I was younger than most kids at the club, & Pellegrini's reign has more or less finished me with it. I've never in all those years, seen such a wealth of potential talent squandered & mishandled & I've seen my arse with it, so I'll go just a few times a season now, until I see proof I'm not wasting my time.
If I feel like that, then there is a decent chance at least some parents & advisors have a similar feeling.