The News of the World says the England defender has still not signed a new five-year contract which has been on the table for the last three months and would have doubled his current £25,000-a-week wages.
Talks have stalled since Richards quit his management company SEM and handed his financial affairs over to his dad Lincoln.
A source close to the contract negotiations said: "Micah was happy to sign the £50,000-a-week deal which was originally offered to him but since his dad became involved the goalposts have moved.
"The demands have rocketed up to £75,000-a-week when all the bonuses are taken into account and that has put the talks on hold."
Richards Snr is taking the view that any one of the top Premier League clubs would be happy to pay his son the higher wages and is challenging City to meet his figures.