Arsenal look set to sanction another exit this summer as striker Eddie Nketiah is now nearing a move to French side Olympique de Marseille.
Marseille had several offers rejected for Nketiah as they fell below Arsenal’s valuation of the striker, but after a break in negotiations, it now appears that a deal is getting closer.
David Ornstein has now reported that Arsenal are ready to sanction Nketiah’s move to Marseille under the terms of a loan with an obligation to buy, set at around £25m.
This means that any profit benefit when it comes to PSR (profit and sustainability rules) will not be seen until next season, but this was a key element of the deal.
Marseille did make permanent bids, but for significantly lower amounts, and football finance expert Adam Williams has now explained the motivating factor which drove Marseille to moving to a different structure of offer for the England international.
Why Marseille pushed for loan with obligation to buy for Arsenal striker Eddie Nketiah
Speaking to Arsenal Insider, Williams explained that Marseille’s financial position meant that they were unable to afford a deal for Nketiah on the books this season, which has driven their desire for an initial loan.
“With loans with an obligation to buy, it’s almost always dictated from the buying team’s side,” Williams explained.
“Sometimes this can be for PSR, as the upfront fee might tip them over the edge of the threshold.
“Alternatively, it can be for tax reasons or cash flow reasons. You can defer the excess payment if you push the cost into the next financial year.
“I believe this is what we saw with Arsenal and David Raya’s loan move from Brentford last season, which has been made permanent this summer.
Marseille follow different financial fair play rules to what Arsenal encounter in the Premier League, but it is a different issue that prevented them from a big purchase of Nketiah now.
“French FFP rules are a bit of a enigma – PSG’s spending shows you that. So I don’t think that would be the driving force behind the structure of this would-be deal,” Williams added.
“From Marseille’s perspective, I suspect this is a matter of cash flow.
“In France, they have only just got a domestic TV deal over the line in time for the new season. And that has been agreed at about half the rate they initially wanted.
“Factor in the hangover effects from Covid, plus the lack of liquidity caused by the absence of massive Saudi spending this summer, and I think it’s easy to see why Marseille might want to defer payment.”
How will Eddie Nketiah’s move to Marseille affect Arsenal’s finances?
The structure of the deal means that there will be no pure profit boost in terms of PSR until next summer, but there is still a huge wage saving to be made with this deal now.
“There might be a nominal loan fee, although I wouldn’t expect that to be substantial given Marseille’s situation at present,” Williams added.
“Arsenal will, of course, save the player’s wage for the season, which will give them more leeway in terms of PSR and cash flow – but they already have ample headroom across both of those.”
Nketiah’s £100k-a-week salary will be off the books for the season once the loan deal is confirmed, and his departure will create more space in the squad.
Arsenal’s sale of Emile Smith Rowe to Fulham provided a huge boost to the books in terms of PSR, as his £27m fee is recorded as pure profit.
Next summer, Arsenal will enjoy a similar boost when Nketiah’s move is made permanent, and that could seriously boost the long-term spending plans for Edu Gaspar.
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