A powerful Melbourne Age story late on Friday afternoon reported that the AFL was preparing to announce findings into a six-month investigation that Demons football staff had deliberately lost matches late into 2009.
Connolly was reportedly facing a hefty 12-month ban while Demons coach in 2009 Dean Bailey was to be suspended for three months.
Connolly, 49, has copped the biggest brunt in the outcome.
The former Demons player and Fremantle coach from 2002-07, was general-manager of football operations when the league's investigation attempted to establish that 'tanking' was undertaken by Melbourne management.
Bailey was sacked by Melbourne deep into the 2011 season and is now a senior assistant at emerging premiership contender Adelaide.
The Demons appear to have missed being banned from any crucial future national drafts.
Chief executive Cameron Schwab also seems to have escaped any sanction for his part in the allegations of 'tanking' in an effort to finish last and get the first two picks in the 2009 draft.
Melbourne recruited gun on-ballers Tom Scully and Jack Trengove with their first two picks at the 2009 national draft.