A decade-long legal stoush between singer Guy Sebastian and his former manager Titus Day – who was imprisoned in 2022 for embezzling money from his star client before being freed on appeal – has culminated in an astonishing admission from the high-profile talent agent.

On Wednesday, Day acknowledged that he failed to pay the former Australian Idol winner all the money he was owed. The pair reached a confidential settlement, prompting Sebastian to drop his civil action against Day.

“There were many instances in which payments that should have been passed on to Guy, were not,” Day conceded in a statement.

“I would do things differently if I had my time again. At an early stage in the dispute, I should have been more reasonable and less emotional, which I have no doubt would have led to a swifter and more conciliatory outcome. I take full responsibility for this.

“Looking back on the latter half of the time when I was managing Guy’s career, I can see that I had become a poor steward of Guy’s income, including income that my company continued to receive after Guy left my management company in late 2017.

“My management company’s failure to properly account for and pass on those payments to Guy was the result of my mistake. I accept that my failures at that time had a serious and regrettable impact on Guy and his family, for which I apologise.”

“I made a number of regrettable decisions which have had painful consequences not only for me and my family but also for Guy and his family.”Titus Day

The dispute began almost a decade ago, when Sebastian began to suspect that Day – whom he considered one of his closest friends – had been withholding significant payments.

When multiple attempts to resolve the conflict failed, Sebastian presented his evidence to police, resulting in Day being arrested and charged. In 2022, a jury found Day guilty of embezzling almost $625,000, and he was sentenced to a maximum of four years in prison.

After serving seven months, Day was freed on appeal, prompting a second criminal trial in 2025. While Day was found not guilty of four counts of embezzlement, the jury was discharged after failing to reach a verdict on the remaining 31 counts. Prosecutors decided against a third criminal trial, prompting Sebastian to initiate civil action.

Sebastian’s lawyer, Mark Faraday, said Day’s statement “speaks for itself”.

“It contains a clear apology, an acceptance of responsibility and an acknowledgement that payments owed to Guy were not passed on,” Faraday said.

“As stated by Mr Day, my client was willing to resolve this matter very early, and on incredibly fair terms. A private resolution has always been Guy’s preference. Unfortunately, this did not happen, and the matter took many unexpected turns over a long period of time.

“Obviously, Guy wishes Mr Day had taken this approach much sooner. However, he appreciates that the parties have finally arrived at a place where they can all move on. For Guy, this is not just a legal settlement; he genuinely wishes Mr Day and his family better times ahead.”

Sebastian explained that although the dispute had taken a toll on those closest to him, he felt obliged to pursue it as a matter of principle.

“I never could have imagined the twists and turns this ordeal would take,” said the singer-songwriter, who has sold more than seven million records and amassed 1.3 billion streams globally. “With the accountability shown and the apology Mr Day has provided in his statement, I am prepared to put aside my claim against him, forgive, and move forward.”

In 2003, Sebastian was voted the winner of the first season of hit reality show Australian Idol, which broke viewing records. Three years later he began working with Day when he signed with 22 Management. In 2009, Day poached Sebastian for his breakaway management company, 6 Degrees.

In his statement, Day said: “During the time when I was managing Guy – and after it – I made a number of regrettable decisions which have had painful consequences, not only for me and my family, but also for Guy and his family. I acknowledge that, long before any criminal investigation, charges or trials, Guy attempted to settle with me on what I now consider to be incredibly fair terms.”

In an exclusive interview with Sunday Life in March, Sebastian and his wife, Jules, detailed the emotional cost of the long-running legal saga.

“Our kids grew up together; they were best friends,” Sebastian said. “You think about the times we sat across the table from each other, and the times our kids ran through the park under sprinklers. [Day’s wife] Courtney and Jules were constantly hanging out and Titus and I were travelling the world.”

At one point, Sebastian found himself sobbing in the toilet cubicle of a NSW courtroom, where he was giving evidence against Day. In desperation, he began to pray.

“Then I felt guilty,” he said. “It was like, ‘Ah, I’ll just say a prayer when the s--- hits the fan.’ I haven’t prayed for so long [and now I’m] just asking for help when things are rubbish.”

During Day’s first criminal trial, Sebastian was in the middle of a national tour. Often he’d endure aggressive questioning from defence lawyers during the day before rushing to an arena at night, where he’d perform to thousands of fans.

“Watching Guy go through this was the hardest thing,” Jules told Sunday Life. “There’s no way to know how it’s going to end, and every day there’s something new to wake up to. It was a really wobbly road, and some would say I handled it terribly.”

But Sebastian insisted that Jules had always been his “rock”, and became emotional when explaining the many ways in which she supported him and their two sons, Hudson and Archie.

“Mainly, I needed her to make sure the kids were sweet; that they didn’t feel like there was something dramatic or earth-shattering going on at home,” he said, noting that this task was made more difficult by intense media scrutiny and paparazzi lurking outside their Sydney home. “And she did that so well. She just killed it.”

In his statement, Sebastian thanked his family, friends and colleagues, including his lawyers, his long-time publicist and his team members. He also praised Rebecca Oxenbould, the former general manager of The Sebastian Foundation, a charitable endeavour focused on adolescent mental health.

“The way you helped me piece everything together was invaluable,” he said. “I genuinely couldn’t have done it without you.”

On Wednesday, Day said he regretted the effects of his actions on Sebastian and his family, “including the impact of being a witness in the protracted criminal proceedings”.

“I thank Guy for his willingness to discontinue the civil legal proceedings against me and allow each of us and our families to move on from the dispute. I look forward to moving on with my life now, and I am sure Guy and his family do as well.”

Faraday commended Sebastian for his strength and perseverance.

“I have observed the positive impact Guy has in the community countless times,” he said. “As a very public person, he has a strong sense of responsibility on many fronts. I’m pleased that through his own difficult circumstances, Guy has been able to place the need for high standards in the management of artists under a spotlight.”