Arsenal have missed out on an expected £6.7million transfer windfall after Folarin Balogun’s proposed £40m move from Monaco to Everton collapsed following a late change of heart.
The former Arsenal striker travelled to Merseyside on deadline day after Everton agreed a deal with Monaco, with the Gunners in line to benefit from a 17.5 per cent sell-on clause.
However, the move fell apart after Balogun’s medical raised an issue, Everton attempted to renegotiate the deal and the United States international ultimately decided not to complete the transfer.
🚨 Folarin Balogun transfer from Monaco to Everton off. Deal for 25yo #ASMonaco striker renegotiated after issues during medical & deal sheet submitted; but USA international decided not to proceed + left #EFC training ground without signing @TheAthleticFC https://t.co/uXjWE3Nd95
— David Ornstein (@David_Ornstein) September 1, 2026
Arsenal miss out on Folarin Balogun payment
Arsenal sold Balogun to Monaco in 2023 for around £34m while retaining a sizeable financial interest in any future transfer.
Standard Sport reports the clause is worth 17.5 per cent, which would have earned Arsenal approximately £6.7m from Everton’s £40m agreement.
Read Arsenal reported on deadline day that Arsenal were set to receive the windfall after Everton agreed the Balogun transfer.
That deal will now not happen.
Everton had agreed terms with Monaco and Balogun arrived on Merseyside to complete the move, but complications emerged during the medical.
Sky Sports reports Everton then looked to change the terms of the transfer before Balogun changed his mind and walked away from the deal.
Reuters similarly reports that Everton identified an issue during the medical, attempted to renegotiate the transfer and requested extra time before Balogun decided not to proceed.
What the collapse means for Arsenal
The consequences for Arsenal are straightforward.
Without Balogun being sold by Monaco, the Gunners’ sell-on clause is not triggered.
The expected £6.7m should therefore be removed from any calculations of Arsenal’s summer transfer income.
That does not alter the wider success of the original Balogun sale.
Arsenal received around £34m for an academy graduate who had not established himself in Mikel Arteta’s first team while retaining the 17.5 per cent clause for a future transfer.
The clause remains relevant while Balogun is a Monaco player.
If the Ligue 1 club eventually sell him in another window, Arsenal could still benefit depending on the exact terms of the agreement.
For now, though, the anticipated deadline-day payment is gone.
Balogun deal collapsed after Everton medical issue
The transfer had appeared close enough for Everton to submit a deal sheet in an attempt to complete the move after the 11pm deadline.
The Guardian reports Everton and Monaco had negotiated extensively and reached an agreement before Balogun ultimately decided against the move.
The Independent says the medical raised an issue before Everton tried to renegotiate the agreement, prompting Balogun to walk away.
That left Everton without the forward they had expected to add after selling both Beto and Iliman Ndiaye.
It also produced an unusual knock-on effect elsewhere in the market.
Monaco’s handling of the Balogun situation contributed to the collapse of Chelsea’s move for Lamine Camara, with Sky Sports reporting the French club ultimately pulled out of the proposed Camara sale.
Arsenal’s summer figures need correcting
The collapsed transfer also means Arsenal’s final summer totals need to be treated carefully.
Arsenal’s own squad is unaffected because Balogun has not been part of Arteta’s first-team group since his 2023 departure.
Supporters can see the current post-window options on our Arsenal squad evergreen page, while the Arsenal First Team hub will track any further squad developments.
The financial position, however, has changed.
Arsenal were hours away from receiving another multi-million-pound Hale End windfall. Balogun’s dramatic U-turn means they will now have to wait.
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