Sorry mate you've had some good posts but this is just daft.
January:
Mahrez - I would like to leave Leicester.
Leicester - We refuse to sell you and expect you to honour your contract.
Mahrez Actual, i'm not keen on this, please pass me my toys as i wish to throw them all in the Manchester Ship Canal. I'm going on strike now for two weeks and speaki g to no one except my mummy. You are not very nice Leicester.
Mahrez - I don't like it but I respect that and withdraw the request.
July:
Mahrez - Please honour the stipulated clause in my contract.
Leicester - We will not honour the contract because you asked to leave before agreeing to stay and honour the contract.
Its ludicrous that your lot would spend all this time on their high horses about him being under contract and that he should adhere to that, and then when it comes times for you to also adhere to the contract decide not to. If you had no intention of paying him his loyalty bonus because he has submitted a request and then withdrawn it then that should have been excruciatingly clear in the contract itself ie: if at any time over the length of the contract the player issues a transfer request all future loyalty bonuses will be revoked for the remaining duration of the contract. If that wasn't made specifically clear in the contract, then you surely don't have a leg to stand on legally.
Not only that but it sets a shitty precedent for all of your other players who know their loyalty bonuses are worth precisely fuck all if they decide to withdraw a transfer request. So they may as well leave it open, kick up as much stink as they like and not return to the fold like Riyad did because your board will just try to spite them anyway.