Chelsea pull out of Manuel Ugarte deal after being gazumped by PSG

Chelsea will not match PSG’s pay offer to Sporting midfielderMauricio Pochettino still keen on Brighton’s Moisés Caicedo

Chelsea have pulled out of a deal to sign Manuel Ugarte after Paris Saint-Germain offered the Sporting midfielder a bigger financial package.

Ugarte, whose contract contains a £52m release clause, received a lucrative offer from Chelsea and there was a growing expectation that the Uruguay international would become Mauricio Pochettino’s first signing. Talks were positive and the club appeared to be leading the race.

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