Chelsea have decided against signing Jadon Sancho permanently, opting instead to pay Manchester United a £5 million penalty to end the loan agreement.
The England winger joined Chelsea on loan last summer after falling out of favour under United’s manager Erik ten Hag. United, who signed Sancho for £73 million from Borussia Dortmund in 2021, appear content to let the 25-year-old leave.
Chelsea did not pay a loan fee for Sancho and covered roughly half of his £300,000-a-week wages. The deal included a clause requiring Chelsea to buy Sancho for around £25 million if they finished above 14th in the Premier League — which they did. But the clubs and Sancho’s representatives failed to agree on terms for a permanent contract, as the player would have needed to accept a wage cut.
Sancho still has one year left on his United contract, and the club owes Dortmund £17 million from his original transfer.
The forward ended the season strongly, scoring in Chelsea’s 4-1 victory over Real Betis to secure their first trophy since February 2022 — the UEFA Conference League. He finished with five goals and 10 assists in 42 appearances.
Though still contracted to Chelsea until 30 June, Sancho is unlikely to feature in the upcoming Club World Cup in the United States.
A Chelsea spokesperson said: “While we value Jadon’s contribution, we couldn’t reach an agreement that suited all parties. We respect his professionalism during the season and wish him the best moving forward.”
Meanwhile, a Manchester United insider commented: “The club recognises Jadon’s potential and contributions, but given the circumstances, this outcome was the best option for all involved.”