Chelsea opt out of Jadon Sancho deal, to pay £5m penalty to Manchester United

Chelsea have reportedly decided against making Jadon Sancho’s stay at Stamford Bridge permanent and will now pay Manchester United a £5 million penalty fee for failing to activate the purchase option in his loan deal.

The England international, who joined the Blues on a season-long loan from Manchester United for the 2024/2025 campaign, is now set to return to Old Trafford when his contract officially expires on June 30.

Sancho, 25, made 42 appearances for Chelsea during the season, scoring five goals, including a crucial strike in the UEFA Conference League final victory over Real Betis. Despite his contributions, the club has opted to turn down the chance to sign him permanently.

Chelsea had the opportunity to secure his services for £25 million and held discussions aimed at adjusting the winger’s wage demands to suit their salary structure. However, both parties failed to reach a compromise on personal terms.

As a result, the Blues will pay a £5 million fee to Manchester United as stipulated in the loan agreement for not taking up the purchase option.

The decision means Sancho will not be part of Chelsea’s squad for the FIFA Club World Cup in the United States next week, even though he remains eligible for the competition.

The winger is now expected to weigh his options ahead of the new season and is reportedly open to either continuing in the Premier League or seeking a fresh opportunity abroad.