Davide Frattesi has officially joined Lazio from Inter on loan, with the Serie A club holding an option to sign the midfielder permanently for a reported €10m at the end of the season.
Frattesi arrived in Rome on the afternoon of the agreement, completed his medical examination and signed his contract to complete the move.
The transfer was initially expected to be structured as a €1m loan followed by an obligation for Lazio to buy Frattesi for a further €14m at the end of the campaign. That arrangement would also have allowed Inter to retain 50% of the profit from any future sale of the player.
However, Lazio’s financial restrictions prevented the clubs from proceeding with those terms. Inter and Lazio therefore renegotiated the deal over Wednesday and Thursday before reaching a revised agreement.
Under the final arrangement, Lazio will pay a reported €5m loan fee. The club then has the option to purchase Frattesi for an additional €10m, making the potential overall value of the transfer €15m.
The figure is significantly below Inter’s reported €30m asking price. That is because Inter are understood to have retained a clause entitling them to 50% of any profit Lazio make from a future sale.
The sell-on arrangement applies to the profit above €15m, rather than half of the total fee received by Lazio. In practical terms, Inter would be due half of any amount Lazio earns beyond the €15m threshold if Frattesi is later sold.
The agreement brings Frattesi back to the club where he began his football development. Lazio’s official announcement highlighted that the Rome club was the first side he joined as a youth player.
Frattesi, who completed the formalities of the transfer after undergoing his medical tests, will now continue his career with Lazio after the clubs resolved the financial obstacles that had threatened to prevent the original deal from being completed.
The midfielder’s switch had been expected to include a compulsory purchase clause, but the change to an option was necessary because of Lazio’s financial situation. Inter and Lazio ultimately reached a compromise by increasing the initial loan payment while lowering the permanent transfer fee and removing the obligation to buy.