Chelsea complete £500,000 signing of Manchester City and Liverpool target | OneFootball

Chelsea have completed the signing of English full-back Yisa Alao from Sheffield Wednesday following interest from Manchester City in the English teenager.

The 17-year-old has proven to be a bright spark in a difficult time for the Owls, having made his maiden EFL Championship start in an eye-catching performance in his side’s defeat against Portsmouth last weekend. 

Wednesday sit rock-bottom of the second-tier table after entering administration in October last year following a prolonged period of financial crisis. The club’s owner during that time, Dejphon Chansiri, failed to curve severe issues including unpaid wages, HMRC tax debts and multiple transfer embargoes. 

The club’s demise and frequent struggles under Chansiri resulted in the Owls being deducted 12 points and after 27 Championship games this term, they currently stand on minus seven points – having won their only game against Portsmouth in September 2025 – a situation that has pushed Alao out the club.

Since playing 63 minutes in the reverse fixture last weekend, Alao managed to attract interest from several Premier League sides and a move was deemed very possible for the left wing-back, with Chelsea reported as the most likely outfit to pursue him by The Sheffield Star over the weekend.

The Stamford Bridge side, recently overtaken by manager Liam Rosenior, closed in on the youngster’s signature and on Monday, the west Londoners confirmed Alao’s arrival from south Yorkshire for an undisclosed fee, though BBC Sport have reported that Chelsea have paid £500,000 to Sheffield Wednesday for the defender.

Reacting to Alao’s sale to Chelsea on Monday, Wednesday’s administrators said in a statement: “Our responsibility is to act in the best long-term interests of Sheffield Wednesday and its creditors.

“This transfer balances immediate value for the club with protection for the future, should Yisa’s career develop as we all hope.”

Liverpool, Everton and Manchester United were others in the race as Manchester City also provided interest in Alao. City have significantly revamped their first-team ranks since Hugo Viana was appointed director of football last summer, having also signed Antoine Semenyo and Marc Guehi in January.

Moreover, City academy product Jaden Heskey recently arrived in south Yorkshire to gain first-team football experience to help his career progress – while the Owls also signed goalkeeper Murphy Cooper, who spent the first half of the season on loan at Barnsley from parent club Queens Park Rangers. 

Wednesday’s new signings, albeit temporary, grant Alao the opportunity to progress his career in the Premier League as Chelsea navigate a transitional period under Rosenior, who has been tasked with leading the Blues to silverware after former Manchester City assistant coach Enzo Maresca was relieved of his duties as Chelsea head coach on New Year’s Day.

Manchester City are not expected to make any further signings in the final week of the January transfer window, with departures set to take precedence as Oscar Bobb closes in on a permanent transfer to Fulham to revitalise his career ahead of this summer’s FIFA World Cup in the United States, Canada and Mexico.