Chelsea have officially decided not to make Jadon Sancho’s loan move permanent, after failing to agree personal terms with the Manchester United winger—resulting in a £5 million penalty that now must be paid to the Red Devils.
According to reports from The Athletic, the 25-year-old England international was expected to complete a full transfer to Stamford Bridge following a season-long loan. However, negotiations between the player and Chelsea collapsed, and with the deal structured as a conditional obligation to buy, the Blues are now liable for a multi-million pound fee despite backing out.
Sancho, who arrived in west London last August, was part of the Chelsea squad that won the UEFA Conference League and secured a fourth-place Premier League finish. While he showed flashes of quality—scoring five goals and providing 10 assists in 41 appearances—his overall impact was not convincing enough to seal a long-term future with the club.
Failed Talks Leave Chelsea Paying for a Player They Won’t Keep
The original loan agreement between Manchester United and Chelsea included an obligation to buy Sancho for up to £25 million, triggered under certain performance conditions. But it was also dependent on the winger and Chelsea agreeing personal terms—something that never materialised.
With Sancho set to return to Old Trafford, Chelsea must now pay a £5 million penalty clause included in the deal to cover the failed permanent transfer. It’s a frustrating financial hit for the Blues, who will now see a player walk away after just one season in blue.
EXCL: Jadon Sancho leaving Chelsea when contract ends June 30 after agreement could not be reached over personal terms for loan to turn permanent. #CFC will pay £5m penalty to #MUFC. 25yo to explore options in England/Europe for next move @TheAthleticFC https://t.co/Mv1cCbB56a
— David Ornstein (@David_Ornstein) June 3, 2025
Inconsistent Performances Raise Doubts
Although Sancho did have standout moments—like scoring in the 4-1 Conference League final win against Real Betis—his overall consistency was a major concern. Only one of his five goals came in the Premier League after December, highlighting his struggles to maintain form across the campaign.
Chelsea head coach Enzo Maresca, when asked about Sancho’s future after the European win in Poland, kept things vague.
“From now on we are going to sit with the club and decide what happens for next year,” he said, hinting at internal discussions already underway.
Ultimately, it seems Chelsea were unconvinced by the winger’s performances, especially when weighing up salary demands and the need to strengthen other positions heading into a busy summer.
From £73m Star to Loaned-Out Risk
Sancho joined Manchester United from Borussia Dortmund in 2021 for a massive £73 million, but he has struggled to live up to that price tag. After a promising start, he quickly fell out of favour under former boss Erik ten Hag, especially following a high-profile public disagreement early in the 2023/24 season.
The fallout saw Sancho frozen out of the first team and sent on loan back to Borussia Dortmund in January 2024. A return to form was short-lived, and he only managed one appearance for United in the 2024/25 season—a brief outing in the Community Shield—before joining Chelsea on loan.
With a contract at Old Trafford running until 2026 (and an option for a one-year extension), Sancho’s long-term future is now uncertain once again. Whether he is reintegrated into the United squad under new management or moved elsewhere, it’s clear the promise that surrounded his arrival in England has yet to be fulfilled.
Chelsea Turn Focus to Dario Essugo
While the Sancho deal has collapsed, Chelsea have already shifted attention to new talent. On Monday, the club confirmed the signing of Dario Essugo, a 20-year-old midfielder from Sporting Lisbon. The Portuguese youngster joins in a deal worth £18 million and is expected to be part of Chelsea’s squad for the upcoming FIFA Club World Cup later this month.
Essugo is regarded as one of the brightest midfield prospects in Portugal and fits Chelsea’s long-term recruitment model of targeting young, high-potential players. His arrival gives Maresca another dynamic option in the centre of the pitch, and unlike Sancho, his deal is already secured.
What Next for Sancho and United?
Sancho’s return to Manchester United now adds another chapter to his turbulent spell at the club. With the winger under contract until 2026 and earning a significant wage, United face a tough decision: reintegrate him into the squad or look for another buyer during the summer window.
What’s certain is that his short time at Stamford Bridge ends with more questions than answers—and leaves Chelsea paying the price, quite literally, for a deal that never went through.
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