Aston Villa has reached an agreement with Chelsea for the transfer of Alejandro Garnacho. The deal involves a loan with a conditional obligation to buy the winger, who joined Chelsea from Manchester United for £40m last summer.
This arrangement follows a separate deal where Morgan Rogers moved from Aston Villa to Chelsea for £117m, making him the most expensive British footballer in history. Both clubs have been navigating financial regulations, with UEFA recently fining them for breaches of financial sustainability rules.
Financial Considerations for Both Clubs
Chelsea’s financial position has reportedly improved since last summer, when they faced a £26.7m fine and a four-year settlement agreement with UEFA. The club sold approximately £300m worth of players last season and anticipates generating a similar amount this season. They have already raised over £120m through player sales.
Despite these sales, Chelsea continues to carry significant debts, with losses of £262m reported within the club’s companies for 2024-25, and £701m at the parent-company level. Sources close to the ownership group describe their investment model, which uses third-party loan providers, as structured and focused on long-term sustainability. They project a substantial increase in revenue to a club record £700m in their next accounts.
Football finance expert Kieran Maguire noted that Chelsea’s Premier League spending compliance is at 85% of their revenue, which offers a slight advantage. Premier League rules allow spending up to 115% of revenue on player costs, with a ‘tax’ on additional costs rather than points deductions if within the ‘red zone’.
For Aston Villa, the sale of Rogers provides a significant accounting profit, potentially between £80m and £90m after deductions for Middlesbrough’s sell-on clause, agents’ fees, and the remaining book value of his 2024 signing. This profit is crucial for Villa to comply with UEFA and Premier League financial constraints.
The Complexity of the Garnacho Deal
The transfer of Garnacho is complicated by UEFA’s rules regarding ‘player exchange transactions’. If multiple deals between two clubs in opposite directions are completed within a 45-day period, or if contracts connect them, they can be considered a swap. This would reduce Villa’s profit in UEFA calculations to the net difference in fees, impacting their financial compliance.
Chelsea had reportedly sought £42.6m for Garnacho. A loan with a conditional obligation to buy is the chosen mechanism, with Chelsea believing the conditions for a permanent move are easily achievable. However, UEFA regulations state that if a condition is considered virtually certain, the player’s registration must be recognized as a permanent transfer from the loan agreement’s inception, potentially still classifying it as a player exchange transaction.
Maguire explained that UEFA aims to prevent convenient player swaps where clubs book profits and comply with rules. He highlighted that Premier League rules are less strict, making it important to determine if the Garnacho deal is deemed a sale, as it affects Villa’s compliance with UEFA’s squad cost ratio regulations.
Garnacho did not report for pre-season training at Chelsea to facilitate a move. Villa’s manager, Unai Emery, reportedly admired the Argentinian winger. The loan structure provides Villa with control, as any obligation in the contract needs to be met to trigger a permanent deal. Villa has previously used similar loan deals, including for Marcus Rashford from Manchester United.
Analysis suggests Garnacho struggled to make a significant impact in his first season at Chelsea, playing 1,217 Premier League minutes across 25 appearances. This is fewer minutes than Rogers (1,528) and Emiliano Buendia (1,527) managed in the same position for Villa last season. Garnacho’s five goal involvements averaged one every 243 minutes, compared to Rogers’ average of one every 90 minutes and Buendia’s every 190 minutes.
Garnacho’s playing style, which often involves hugging the touchline and staying wide, might require a tactical adjustment from Emery. He has previously operated on the right flank, scoring in an FA Cup final win for Manchester United.
Squad Management and Future Transfers
After signing Rogers, Chelsea is reportedly still active in the transfer market, exploring defensive options such as Maxence Lacroix from Crystal Palace, and showing interest in John Stones and Jacobo Ramon. They are also in talks with Rayo Vallecano for full-back Pep Chavarria, who is expected to cost between £25m and £40m.
Chelsea has pre-agreed four signings since the start of 2025, completing deals for Palestra and Rogers, and had a £64m bid for Bournemouth’s Alex Scott rejected. With Dastan Satpaev due to join in August, Chelsea currently has 38 senior players. Further sales are anticipated, with players like Benoit Badiashile, Axel Disasi, Trevoh Chalobah, and Marc Guiu reportedly available for transfer. Mamadou Sarr is expected to leave on loan within the Premier League.
A small group of players, including Moises Caicedo, Estevao Willian, Cole Palmer, Joao Pedro, and Levi Colwill, along with some highly-rated young prospects like Josh Acheampong, are considered untouchable. Chelsea did not qualify for European competition this season.
The deal for Alejandro Garnacho is a loan with a conditional obligation to buy, with the total package, including the loan fee, understood to meet Chelsea’s valuation.
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Source: bbc.com
Priya Nair
Sports Reporter
