The £500,000 reason why Liverpool are still huge favourites to complete £8m deal to sign thrilling Fabio Carvalho

Liverpool offer a greater chance of higher financial compensation for Fulham compared to overseas clubs and so are still the overwhelming favourites to land Fabio Carvalho.

The Reds agreed an £8m fee with the Londoners before the 11pm deadline on the 31st but due to the EFL's lack of deal sheets, they were unable to complete the transfer to Anfield nor the loan back to Fulham.

James Pearce reports the loan back to Craven Cottage was "non-negotiable" so the deal fell through and although it might feel as though the transfer is 'off' now, Liverpool are still in the driving seat.

At least more so than any other club reported to have interest and it's down to the Reds ability to compensate Fulham better than others.

According to the Athletic, FIFA rules stipulate that Fulham would be entitled to less than £500,000 in compensation from overseas clubs in the summer should Fabio Carvalho join a club like Borussia Dortmund or Bayern Munich.

When players under the age of 21 leave upon the expiry of their contracts, the clubs they leave are due compensation for the costs of their development but in England these costs are higher and so Liverpool would offer Fulham a greater chance of higher compensation.

As things stand, the Reds agreed to an £8m fee with a sell-on clause before the deadline but it stands to reason that offer will not be valid anymore as his contract expires in the summer but Fulham will most certainly get a higher fee from Liverpool than from an overseas club.

There's no reason to grow too concerned about the 19-year-old not yet signing for the Reds as he wouldn't have joined Liverpool until the summer in any case and so far there have yet to be any reports suggesting the Merseysiders are at risk of having a deal hijacked.

So for the time being, it's best to sit tight and wait for developments which might be a bit frustrating but we still have Luis Diaz to enjoy and he will soon make his debut which is something to get very excited about.