Arsenal have agreed a deal to sign Piero Hincapie from Bayer Leverkusen on favourable terms, negotiating an initial loan with an option to buy.
LEVERKUSEN, GERMANY - DECEMBER 10: Piero Hincapie of Bayer 04 Leverkusen looks on during the UEFA Champions League 2024/25 League Phase MD6 match between Bayer 04 Leverkusen and FC Internazionale Milano at BayArena on December 10, 2024 in Leverkusen, Germany. (Photo by Lars Baron/Getty Images)
Photo by Lars Baron/Getty Images
David Ornstein broke the news for The Athletic on Friday night that Arsenal have reached an agreement with Bayer Leverkusen to sign Piero Hincapie on an initial season-long loan with a buy option.
Ornstein reports that the total deal is worth €52m (£45m), and Leverkusen will have a 10% sell-on clause in Hincapie’s contract. The player will travel for his medical this weekend.
The report also mentions that Hincapie will sign a five-year contract at Arsenal if and when he completes his permanent transfer in 2026, so the deal will run to 2031.
HEIDENHEIM, GERMANY: Piero Hincapie of Bayer 04 Leverkusen in action during the Bundesliga match between 1. FC Heidenheim 1846 and Bayer 04 Leverkusen at Voith-Arena on April 05, 2025. (Photo by Christian Kaspar-Bartke/Getty Images)
Photo by Christian Kaspar-Bartke/Getty Images
Fabrizio Romano then broke down the €52m fee, explaining that Arsenal are paying an initial €6m for Hincapie’s loan move, and they’ll then pay the remaining €46m to make the transfer permanent next summer.
With Hincapie joining Arsenal, Jakub Kiwior is now free to complete his exit to FC Porto. The Gunners were holding off on approving the Poland international’s departure until they’d secured a replacement.
The terms of Kiwior’s exit were a key factor in Arsenal’s decision to pursue an initial loan for Hincapie. Porto were also offering a loan with an obligation to buy, meaning Arsenal won’t receive all the money until next summer.
BIELEFELD, GERMANY: Piero Hincapie of Bayer 04 Leverkusen looks dejected during the DFB Cup Semi Final between DSC Arminia Bielefeld and Bayer 04 Leverkusen at Schueco Arena on April 01, 2025. (Photo by Christof Koepsel/Getty Images)
Photo by Christof Koepsel/Getty Images
As for why Arsenal have agreed an “option” to buy rather than an obligation, that will be for accounting purposes.
If Hincapie completes a permanent transfer, the fee has to be accounted for this year. The same is true for a loan with an obligation to buy, which is effectively considered a permanent transfer from a financial perspective.
But with a loan with an option to buy, the transfer doesn’t have to be included in the accounts until the option is activated. Meaning both Arsenal and Leverkusen can effectively delay the €46m payment to next year.
For Arsenal, that eases some financial strain after a big summer of purchases. As for Leverkusen, with the Bundesliga club already making a large number of big-money sales this summer, they’re better off delaying this fee to next year anyway.
LEVERKUSEN, GERMANY - SEPTEMBER 25: Piero Hincapie of Bayer 04 Leverkusen poses during the team presentation at BayArena on September 25, 2024 in Leverkusen, Germany. (Photo by Christof Koepsel/Getty Images)
Photo by Christof Koepsel/Getty Images
Arsenal have recent experience of such a deal, having done the same thing with David Raya. Like with Raya, there’s every expectation that the Hincapie transfer will turn permanent. But the small possibility that Arsenal could pull out is enough to change how the deal is accounted for.
All that’s left now is for Hincapie to complete his medical and get all the formalities of his transfer done ahead of Monday’s transfer deadline.
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