Arsenal will pay £20m upfront for Nicolas Pepe, paying the remaining £52m over the next five years.

Lille's Ivorian forward Nicolas Pepe celebrates after scoring a goal during the French L1 football match between Lille (LOSC) and Olympique Lyonnais (OL) on December 1, 2018 at the Pierre Mauroy Stadium in Villenueve d'Ascq. (Photo by FRANCOIS LO PRESTI/AFP/Getty Images)
Lille’s Ivorian forward Nicolas Pepe celebrates after scoring a goal during the French L1 football match between Lille (LOSC) and Olympique Lyonnais (OL) on December 1, 2018 at the Pierre Mauroy Stadium in Villenueve d’Ascq. (Photo by FRANCOIS LO PRESTI/AFP/Getty Images)

This summer Arsenal are reportedly working with a budget of just £40m which means they’ve had to be clever in the market, not something we’re used to them being.

According to the Daily Mail and others, Lille are happy to receive Pepe’s transfer fee over a number of years as it will help with FFP.

Daily Mail 30 July 2019

Arsenal have already brought Gabriel Martinelli to the club for £6m while they are expected to only pay a small part of William Saliba’s fee this summer.

Forking out £20m this summer for Pepe, therefore, keeps them within their reported £40m budget when you factor in £15m to loan Dani Ceballos and the money generated from sales so far.

Even though Arsenal deny they have only £40m, it seems like they do.