Simon Jordan believes an initial loan move for Tammy Abraham could make sense for both Chelsea and Arsenal.
There are reports the Gunners are looking to sign striker Abraham on a season-long loan with a view to buying him for £40m next summer.
The England international, 23, is expected to leave Stamford Bridge after being overlooked by Blues boss Thomas Tuchel last season.
Speaking on Talksport, former Crystal Palace chairman Jordan said: “It makes commercial sense if the conditions work that are loaded by both sides.
“The selling club gets an opportunity to fix a price that isn’t subsequently depreciated by the player’s performance or the buying club finding that they’re victims of their own success and someone comes in – Tammy bangs in a load of goals and all of a sudden the selling club wants £60m for him rather than £40m.”
Jordan added that an obligation to buy would not be unconditional and that Arsenal would be able to back out of buying Abraham were he to flop at the Emirates Stadium.
Jordan explained: “There will be certain conditionality in the obligation to buy.
“It isn’t just a blank cheque. You don’t say ‘We’ll take him on loan and ultimately it doesn’t matter how badly he plays, we’ve got to pay you £40m’.
“Nobody in their right mind would enter into that obligation to buy under that auspice.
“It can’t be unconditional, because if he stinks the place out I don’t want him for £40m.
“I will say ‘If he plays 25 games and does X, Y and Z amount of things, yes I’ll pay £40m for him’. Because if he really is a stinker, he ain’t going to play 25 games.”