'No panic buy' - Guehi would cap £414m rebuild as Man City up title ante

Manchester City have upped the ante in the Premier League title race by flexing their muscles in the January transfer window.

Pep Guardiola signed Antoine Semenyo from Bournemouth last week and the Ghanaian has made an instant impact by scoring two goals and providing one assist in his first two games.

City are set to make it a double coup after agreeing a deal in principle for Crystal Palace captain Marc Guehi and, like Semenyo, Guardiola will be hoping the centre-back can fit seamlessly into the starting 11.

Dealing with an injury crisis in central defence and needing to claw back a six-point deficit on Arsenal after drawing their past three league games, City have topped off their 12-month rebuild with two eye-catching signings.

It should be stressed that the Guehi deal is not yet done, as Liverpool know all too well having failed to complete his signing in the summer, but on this occasion it looks to be heading towards a positive conclusion for City.

• Man City agree £20m deal to sign Palace captain Guehi

City in 'incredibly strong' financial position

Since 1 January 2025, City have signed 14 players to the tune of around £414m - a complete overhaul of the squad.

Guardiola is working with a new set of players and coaching staff after the disappointment of last season, in which they failed to win a major trophy for the first time in eight years.

Kevin de Bruyne, Ederson, Ilkay Gundogan, Kyle Walker and Jack Grealish, who have been the fabric of City's success in recent years, were all moved on in the summer, lowering the average age and wage bill of the squad.

In their latest accounts to the financial year ending June 2025, City reported total revenues of £694m, the third-highest in their history.

In an era where many clubs are hamstrung by profit and sustainability rules (PSR), how have they managed to splash the cash so freely?

"City are in an incredibly strong financial position as far as PSR is concerned," football finance expert Kieran Maguire told BBC Sport.

"They have made profits of £144m in the last three years in their accounts and clubs are allowed to lose up to £105m. They have an awful lot of flexibility. Their wage bill has started to go down too because some of the big-hitters have left.

"What City have been good at doing, which has gone under the radar, is selling players very successfully. In the last three years they have generated £350m profit from player sales. For example, they sold Cole Palmer to Chelsea for £40m, which is pure profit as an academy player.

"City have spent more than most but brought in more than most too. Doing that has been really beneficial to them. That is the aspect which is not being picked up by fans."

Guehi signing a strategic deal

Once Guehi has officially signed, those at Etihad Stadium will take great pleasure in securing the services of one of the best centre-backs in the country.

Guehi was wanted by clubs from all around Europe, not only last summer but this transfer window too.

It is understood the 25-year-old has been admired by City for a long time and they were willing to wait until the summer to bring him in, but had to act quickly and decisively after injuries to Ruben Dias and Josko Gvardiol.

Though youngsters Abdukodir Khusanov and Max Alleyne have filled in flawlessly, title races require finished products with the know-how of competing in big games.

Guehi will provide strong leadership having captained Palace to a shock FA Cup triumph over City at Wembley last season, as well as playing a major part in England's run to the final of the 2024 European Championship.

Though in the final months of his contract at Selhurst Park, a £20m fee for an international player with proven Premier League experience, and one which can hit the ground running immediately, can be classed as highly satisfactory business.

Sources have said this is not a knee-jerk transfer or a panic buy because of the injury situation, instead being struck strategically for a player that is anticipated to be at the club for the long-term.

Since the start of last season, Guehi ranks inside the top 10 among Premier League centre-backs for clean sheets, duels won, aerial duels won and line-breaking passes. He will bring calmness and physical dominance to the City backline.

His potential signing could also spell the end for John Stones, with the Englishman currently out injured and his contract expiring in the summer. The 31-year-old played only 11 top-flight games last season and just seven so far this year.

Earlier this month, Guardiola seemingly cast doubt on Stones' future by saying his injury record will have to be taken into account in contract talks.

'Arsenal can spend £100m if they need to'

Guehi is expected to go straight into the City first team and this power-play will not have gone unnoticed by Arsenal, watching one of their closest challengers strengthening significantly in an attempt to chase them down.

BBC Sport understands the Gunners were in the race for Guehi's signature but wanted him to hold off from signing for City in order to bring him in during the summer.

That does not look like it will transpire, as personal terms between City and the player are not expected to be an issue.

Since taking charge in December 2019, Mikel Arteta has spent more than £900m on new signings, including £250m this summer as they look to end their long wait to claim the Premier League title.

Despite their significant outlay over the past few years, are Arsenal still in a strong financial position to spend further?

"If they need to spend £100m this month, they can do that," adds Maguire. "From a PSR point of view, Arsenal don't have much to worry about."

City have signalled their intent, how will those at Arsenal respond?