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How much did Arsenal get from Omari Hutchinson sell-on clause?

How much did Arsenal get from Omari Hutchinson sell-on clause?

Omari Hutchinson’s transfer to Ipswich Town has been confirmed, as has the cut of the fee Arsenal will receive from their sell-on clause.

Omari Hutchinson joins Ipswich Town from Chelsea, signing a 4 year contract, Portman Road, Ipswich, UK - 30th June 2024
Omari Hutchinson joins Ipswich Town from Chelsea, signing a 4 year contract, Portman Road, Ipswich, UK – 30th June 2024

Ipswich Town confirmed on Sunday night that they’ve completed the signing of former Gunner Omari Hutchinson from Chelsea on a permanent basis for a club-record fee.

Hutchinson spent the 2023/24 campaign on loan with Ipswich in the Championship.

The BBC had reported prior to the announcement that the fee would be £20m, with a further £2.5m potentially due in add-ons.

Arsenal had a sell-on clause in the deal, and Nizaar Kinsella has now confirmed that the clause was worth 15%. So Arsenal will receive £3m of the initial fee, and another £375,000 if Hutchinson meets his add-on targets.

HULL, ENGLAND: Omari Hutchinson of Ipswich Town looks on during the Sky Bet Championship match between Hull City and Ipswich Town at MKM Stadium on April 27, 2024. (Photo by George Wood/Getty Images)
HULL, ENGLAND: Omari Hutchinson of Ipswich Town looks on during the Sky Bet Championship match between Hull City and Ipswich Town at MKM Stadium on April 27, 2024. (Photo by George Wood/Getty Images)

The Gunners also received a fee when Hutchinson first moved to Chelsea on a permanent transfer in 2022. That deal was not a free transfer, contrary to many reports.

Hutchinson was still under contract with Arsenal when he made the Chelsea move, even playing for the u21s in pre-season days before it was confirmed, so he wasn’t eligible for a free transfer move.

Sell-on clauses also don’t exist for players who are out of contract, so the rumour never made much sense.

Yet the fee for that initial Arsenal-Chelsea deal has never been confirmed, and it was reportedly a relatively modest fee.

Omari Hutchinson (L) takes part in training at the Emirates Stadium (Photo via Arsenal.com)
Omari Hutchinson (L) takes part in training at the Emirates Stadium (Photo via Arsenal.com)

In the end, Chelsea are proving the primary financial beneficiaries of Hutchinson’s academy career, picking up £17m from Ipswich and sending Arsenal £3m.

Whatever Chelsea paid Arsenal in 2022, it surely wasn’t enough to bridge that £14m gap.

Chelsea earned that money without integrating Hutchinson into their first-team, giving him just 49 senior minutes. That’s the impact that a good loan can have, and it’s clear the Gunners need to improve on that front.