Liverpool's transfer switch for Ronald Araujo will see the star defender join on loan from Barcelona for the campaign, with a transfer clause inserted into the deal.
Ronald Araujo of FC Barcelona, speaks to the fans as players of FC Barcelona celebrate after defeating Real Madrid, and winning the LaLiga title, after the LaLiga EA Sports match between FC Barcelona and Real Madrid CF
Ronald Araujo has a transfer clause in his deal to join Liverpool(Image: (Photo by Eric Alonso/Getty Images))
Liverpool's transfer business continues to take twists and turns in the market, with the latest move blindsiding many and handing Andoni Iraola another option within his team.
Reports claim that the Reds will sign Ronald Araujo on loan from Barcelona for the season, a switch that came out of nowhere to help fix several issues within the team.
The 27-year-old is a centre-back and right-back hybrid, capable of playing both positions comfortably to help fill out the depth in the backline.
It's an area that has become a problem for Liverpool, with the centre-back ranks impacted by injury concerns for Jeremy Jacquet, Giovanni Leoni, and Joe Gomez, while the latter is also an issue at right-back, where Conor Bradley is another injury absentee.
The deal makes sense in covering problem areas within the team, but it also makes sense from a financial perspective for the Reds, during a market that has been rather quiet for them.
The loan means that the club doesn't take on any up-front costs for Araujo, potentially freeing up funds to be placed elsewhere in the team within the final few weeks of the market.
There is a downside to this type of deal normally, which comes when a team wants to make the deal permanent, as top performances can see the selling club increase the player's valuation for an exit.
Fortunately for Liverpool, there is a transfer clause in the deal. Fabrizio Romano reports that there is an optional buy clause in the agreement with Barcelona, which can allow the Reds to trigger a permanent move next year, should he impress.
It's a decision that helps the Merseyside club in several ways, though mainly from a risk perspective, but also from a financial rules point of view.
The first is that Liverpool can try before it buys. There is no guarantee that Araujo will transition well into the Premier League, while injury concerns of the past could appear again to put some doubts over his place moving forward. If he does impress, then the club has already secured a fee and terms of an agreement.
The other main view comes down to UEFA's financial rules. The European soccer governing body can determine a loan deal to be as good as a permanent if there are conditional obligations in a loan deal, such as a low amount of games played to turn a loan into a permanent.
However, in this instance, because the purchase is optional, Liverpool only takes on the salary for the year in the financial results, and none of the transfer fee.
Ronald Araujo of FC Barcelona
Ronald Araujo of FC Barcelona
That could now free up the finances to push for large deals in the final weeks of the market. Most notably, Liverpool continues to push for the signings of Bradley Barcola and Ibrahim Mbaye from PSG, which will cost the team a lot of money.
However, the smart move for Araujo covers off some problem areas without a penny spent in the market and a chance to keep him next summer.