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Football London
Football London
Sport
Alan Smith

Mesut Ozil to Fenerbahce, the Arsenal pay-off and the role of their £120m Bank of England loan

Mesut Ozil has left Arsenal for Fenerbahce, ending an eight-season association with the North London club that brought joy and disappointment in equal helpings.

Having not been part of Mikel Arteta's squad for the opening half of this campaign, the 32-year-old attacking midfielder and Arsenal came to a mutual agreement by terminating his contract six months early.

But there are plenty of outstanding questions around the financial implications of the deal.

Mikel Arteta press conference after win vs Newcastle United

Here is an attempt to explain it all.

How much money was Ozil due to get in the final six months of his deal?

An eye-watering £7million but the agreement will have seen both parties meet somewhere in the middle. The exact amount remains unclear but it is likely between £4-5million.

So Arsenal will still be effectively paying Ozil a significant portion of his wage after he has left?

Yes and no. While the exact financial details of this agreement are yet to be made public, typically in such a scenario the club would pay the player a percentage of what was remaining on their contract.

Will he be getting it all as a lump sum right away?

No. The money will be paid in instalments rather than a hefty one-off. These can typically be stretched over a year or two, with quarterly or twice-yearly payments.

Arsenal have had to take out a £120million loan from the Bank of England. Will some of that money go to Ozil?

Possibly. There are several restrictions on the low-interest loan secured from the Bank of England last week in terms of usage - most notably it cannot be spent on acquiring new assets (ie signing players).

But Ozil was an existing asset and these payments can be viewed as similar to wages as he was already under contract before the loan was agreed.

And what of the money Fenerbahce are paying him?

First off he will be getting a signing-on bonus of about €5million (£4.45million) with his annual wage around €4million.

Combined with the money he will get from Arsenal, that means in the short-term the former Germany star will be earning even more than previously.

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