Manchester City are “closing in” on a deal to sign Mateo Kovacic from Chelsea, according to ESPN journalist James Olley.

The reporter claims that the two clubs have now agreed a fee in the region of €40m (£34m) for the Croatian international:

#mcfc closing in on deal worth around €40m for #cfc midfielder Mateo Kovacic. Few issues to resolve including how much is paid up front (to help #cfc with FFP compliance) but expectation is deal should be done by June 30. Story: https://t.co/AOS4aS3ocZ

— James Olley (@JamesOlley) June 16, 2023

As Olley points out, Chelsea are keen for City to pay as much money upfront as possible so that the transfer fee counts towards this tax year which ends on June 30th. For Financial Fair Play reasons, this is very important for the London club.

Considering the treble winners are not exactly short of cash, you don’t think this will be a problem.

When will Kovacic officially become a City player?

Due to FFP compliance, it is important for Chelsea that the deal is tied up before the end of the month. It is believed that once all the paperwork has been sorted out, the transfer will be announced within the next couple of weeks.

Personal terms have already been agreed with Kovacic so, barring any issues with the medical, there shouldn’t be any last-minute hitches.

Are City closing in on any other transfer targets?

Reliable reports suggest that the Citizens are holding talks with the representatives of RB Leipzig defender Josko Gvardiol who is, coincidentally, Kovacic’s international teammate.

Discussions are being held about the centre-back’s potential salary before the Premier League champions go ahead with a formal bid for the player.

Gvardiol is expected to cost around €100m (£86m), with it being claimed that he is being lined up as a possible replacement for Aymeric Laporte.