Arsenal are set to receive another deadline-day windfall after Everton agreed a £40million deal with Monaco for former Gunners striker Folarin Balogun.
The United States international left Arsenal for Monaco in 2023, but the club retained a 17.5 per cent sell-on clause as part of that transfer.
With Everton now agreeing a £40m fee for the 25-year-old, Arsenal are expected to receive around £6.7m from the deal.
🚨🔵 EXCL: Everton reach club to club agreement with AS Monaco for Folarin Balogun.
€45m fixed fee, €5m add-ons and sell-on clause too agreed with #EFC, Monaco are ready to sell.
Negotiations ongoing tonight on personal terms; final key step to get it done. pic.twitter.com/XWGJwfFPmf
— Fabrizio Romano (@FabrizioRomano) August 31, 2026
Arsenal cash in on Folarin Balogun clause
Balogun came through Hale End after joining Arsenal at the age of eight before eventually leaving for Monaco in a deal worth around £34m.
He made 10 senior appearances for Arsenal and scored twice, with loan spells at Middlesbrough and Reims helping establish his reputation before the permanent move to France.
Balogun has since scored 31 goals and provided 13 assists in 91 appearances for Monaco, while also establishing himself as a United States international.
Arsenal’s decision to include a substantial sell-on clause when sanctioning his departure has now paid off.
Read Arsenal reported on Sunday that the Gunners could receive a sizeable windfall if Everton completed a move for Balogun.
That possibility has now become much more concrete after Everton agreed the £40m fee with Monaco.
Sky Sports’ latest Everton update also reports that the £40m Balogun deal has been agreed, with the striker expected to become another major addition at the Hill Dickinson Stadium.
Why Arsenal will receive around £6.7m
The important figure is the 17.5% sell-on clause Arsenal retained.
Standard Sport calculates that the clause should bring Arsenal approximately £6.7m from Balogun’s move.
That money comes without Arsenal needing to sell another member of Mikel Arteta’s current squad.
It also adds to a summer in which Arsenal have already generated significant income through departures including Gabriel Martinelli, Gabriel Jesus and Fabio Vieira.
Sell-on clauses can sometimes appear relatively insignificant when a player initially leaves, but Balogun’s move shows their long-term value.
Arsenal allowed a player outside Arteta’s first-team plans to depart permanently while preserving a financial interest in his future.
Three years later, that decision is set to produce another multi-million-pound return.
Everton move after Iliman Ndiaye sale
Everton’s move for Balogun comes during an extremely busy deadline day at the club.
Manchester City have agreed a £65m deal to sign Iliman Ndiaye from Everton, while the Merseyside club have subsequently moved for attacking reinforcements.
The Guardian reports Everton have agreed the £40m transfer with Monaco, with Balogun set to bolster David Moyes’ forward options.
The move is also expected to end Everton’s interest in bringing Richarlison back from Tottenham.
For Arsenal, however, the key consequence is financial.
Balogun has not been an Arsenal player since 2023, but his return to the Premier League is still set to benefit his former club.
Another Hale End transfer could earn Arsenal money
Balogun may not be Arsenal’s only sell-on success on deadline day.
Former academy defender Brooke Norton-Cuffy is also poised to return to England after Hull agreed a deal worth around €14m (£11.9m) with Genoa.
Arsenal are understood to have retained a sell-on clause when Norton-Cuffy left for Genoa in 2024.
The percentage of that clause has not been reliably reported, so it would be wrong to put an exact figure on Arsenal’s return.
However, it means Arsenal could receive another payment from a former Hale End graduate before the window closes.
That further underlines the financial value of Arsenal’s academy even when players do not establish themselves permanently in the first team.
Arsenal’s transfer income continues to grow
The Balogun payment will not transform Arsenal’s finances on its own.
But alongside major first-team sales and potential additional sell-on payments, it contributes to a significant deadline-day income stream.
The Gunners remain active elsewhere, with Ethan Nwaneri heading to Borussia Dortmund on loan and several permanent exits being completed.
Arsenal have also walked away from a late move for Malick Fofana, while their pursuit of Julian Alvarez remains unresolved.
The Balogun deal therefore arrives at a useful moment.
Arsenal might no longer control the striker’s career, but the £40m Everton agreement means the club’s decision to protect itself financially when he left is about to pay off.
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