Aston Villa’s transfer deal with Chelsea for Alejandro Garnacho has more details that may not be widely shared in public.
Aston Villa have completed the loan deal with Chelsea for Alejandro Garnacho, which took place only a matter of days after Morgan Rogers’ £117 million move to the Blues. However, the deal is not considered a swap deal or trade, despite the fact that it was completed between the two clubs within 45 days, based on UEFA regulations.
Apparently, both Villa and Chelsea found a way to avoid it being classified as a swap deal, as such an arrangement would be a disadvantage for the Lions regarding profit calculations in their accounting books. Nevertheless, Villa might have to pay the price for such a deal, although it may not be announced publicly. Covering Garnacho’s entire salary is touted to be one of the conditions.
There seems to be no clarity yet regarding the details of the number of games the Argentine must play or the conditions that need to be met for the loan move to become permanent. This might have been done on purpose so that it would not be seen as “virtually certain” to trigger the player’s clear exit.
According to transfer specialist Ben Jacobs, the Lions had to be creative with this deal to take advantage of a loophole in UEFA’s financial rules, as reported by TalkSport.
“This deal is more about being financially creative under new UEFA FFP rules. Essentially, under FFP, to stop these mutually beneficial deals, but are two separate bits of business that each club can reflect positively on their books because you get your sale fee on your annual books, and it’s problem solved in the short term.
“You get the part that you invest amortised over the length of the contract and it’s less palatable and it helps you navigate the financial rules.
“So, what UEFA did recently is they said, ‘If in a 45-day window you do these separate or mirrored deals, then you can’t just declare them individually and both benefit. You’ve got to take the net and ultimately factor them in as if they were almost swap deals.’
“But if you do one that is £117m for Morgan Rogers and then a totally separate loan with a conditional obligation, there’s a loophole. And when the obligation is triggered and you finally get your fee, you’ll be outside of that 45-day window.
“So I sense that Garnacho, Villa and Chelsea all understand that this is a permanent deal wrapped up in a loan with a conditional obligation to buy structure.”
Registering Garnacho on loan with an indirect obligation to buy later perhaps gives Villa an advantage. However, it also brings its own disadvantages, especially since Villa have not yet concluded their business with Chelsea.
Emery is still keen to bolster the squad by securing Nicolas Jackson’s move this summer. Such a deal would be unlikely to be completed soon. In fact, the Senegalese forward might have to wait until January to complete his switch to Villa Park because of the 45-day window under UEFA regulations. The only alternative might be too risky for Villa — making another major sale. It will be interesting to see whether Emery is willing to do that or prefers to pursue other targets instead.
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