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Chelsea pay huge penalty fee to send Jadon Sancho BACK to Man Utd after breakdown in permanent transfer negotiations

Jadon Sancho’s brief revival at Chelsea is coming to an end, as the club has reportedly agreed to pay a £5 million ($6.76 million) penalty fee to Manchester United after failing to finalise a permanent move for the winger, according to The Athletic.
Sancho, 25, joined Chelsea on a season-long loan from United with an obligation to buy that could have seen the total transfer fee rise to £25 million ($34 million). However, negotiations over personal terms broke down, preventing the deal from being completed. As stipulated in the loan agreement, Chelsea will now incur a penalty for backing out of the full transfer.
Despite the setback, Sancho made notable contributions during his loan spell at Stamford Bridge. He assisted the match-winning goal on his debut against Bournemouth and scored in Chelsea’s 4-1 UEFA Conference League final victory over Real Betis—moments that briefly reignited faith in his talent. Over the 2024/25 campaign, Sancho made 42 appearances, netting five goals and providing ten assists across all competitions.
However, inconsistency remained a concern. His flashes of brilliance weren’t enough to convince Chelsea to move forward with a permanent deal, especially amid broader financial planning and squad reshaping.
Now set to return to Old Trafford on June 30, Sancho faces an uncertain future. Fabrizio Romano reports he is on United’s list of players available for transfer this summer, as the club looks to raise funds for incoming signings. Given his underwhelming record at United—nine Premier League goals in two-and-a-half seasons—a fresh start elsewhere looks increasingly likely.
Sancho is not expected to feature for Chelsea in the upcoming FIFA Club World Cup, and attention now turns to which club might offer the once highly-rated England international a platform to truly revive his career.