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Mikel Merino (now playing for Arsenal)


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http://www.chroniclelive.co.uk/sport/football/transfer-news/mikel-merinos-newcastle-transfer-united-13391035

Newcastle’s decision to broker a loan deal with an obligation to buy for Mikel Merino hints at the budgetary constraints that United are working under this summer.

 

In 2015 Spanish ‘paper Marca called loans with an obligation to buy “permanent deals dressed up as loans”. They weren’t wrong.

 

There is money to spend and Rafa Benitez has applied pressure to Mike Ashley to make sure he does that but the structure of the Merino deal looks like a clear attempt to keep costs down.

 

This form of a loan deal is a relatively common thing for overseas clubs working with finances that haven’t been bouyed by the sort of TV deal that Premier League clubs have benefited from. It means that the initial deal is a loan but the clubs have effectively agreed the permanent deal – but the buying club will take the player at the end of the loan regardless of how he performs in his first year.

 

It is a marked difference from, for example, the deal that brought Loic Remy to Newcastle from QPR. This had no obligation to buy and the player decided to look elsewhere.

 

Similarly, there is no clause in a loan with an obligation to buy. It is simply a way to structure the deal to keep costs down or to comply with Financial Fair Play rules.

 

The reason for doing it is to spread the cost of the transfer over a couple of years, preserving some of the current transfer budget even if you are committing to covering the wages for that year.

 

There have been a number of deals done this way: Fabio Borini moved to AC Milan from Sunderland on a similar deal. The motivation for the selling club is to get a player who is surplus to requirements off the wage bill while also guaranteeing a long-term move.

 

So Merino will be announced as a loan but his long-term future is on Tyneside.

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I think doing this deal now and being creative about the transfer for next summer is perfectly good if that means we're able to add MORE this way now and better quality.

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Has potential to be a very good signing this, sounds very shrewd. I still think we need those two big signings including a transfer fee breaker to feel like we are taking the window seriously.

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