If it's a loan then it MUST be a loan with an option to buy, but how does that work seeing as he's out of contract next summer? Would he have to sign a new contract with Chelsea? Watch those bastards give him 125k/wk just so even if we can afford the fee we won't be able to pay his wages.
He's not out of contract till the end of season 2016 when he will be 23 years of age and that is key for if a player aged under 24, at the end of their contract is offered a new contract on equal or better terms then the club have in effect retained the players services.
Yes the player can give notice that they don't want to sign that new contract but any club that then signs the player has to pay tribunal agreed compensation
If he goes out on loan I would expect it to be on the back of a new 5 year deal and yes his wage would probably be elevated. As we discussed yesterday a player on loan is still paid by the owning club and whilst of course the club that take the player on loan will have to pay monies for the loan there is nothing to say what % of the players wages will be paid if indeed any is paid at all.