Report: Watford plotting bargain deal for Liverpool's Jerome Sinclair by exploiting transfer loophole

Watford are reportedly moving for Liverpool striker Jerome Sinclair.

According to the Daily Mail, Watford could land Liverpool forward Jerome Sinclair on the cheap - by having Granada or Udinese sign him.

Sinclair, 19, joined the Reds from West Bromwich Albion at the age of just 14 in 2011, and has long been tipped to be a star of the future since arriving at Anfield.

Just over a year after signing for Liverpool, Sinclair broke the record for the youngest ever player to feature for the Liverpool first-team, making his debut at the age of just 16 years and six days - ironically against West Brom - in the Capital One Cup.

Since then, Sinclair has played just three times, and with his contract expiring at the end of the season, there has been some concern that he could leave the club.

The Daily Mail now report that teenage striker Sinclair, who scored for Liverpool in their recent 2-2 FA Cup draw against Exeter City, could end up turning out for Premier League rivals Watford - but in a complex deal.

It's stated that foreign clubs can sign Sinclair at a much lower cost than English clubs, and Watford have an advantage in that owner Giampaolo Pozzo also runs Italian club Udinese and La Liga side Granada, giving the Hornets something of a transfer loophole, which their rivals don't have.

Players have been exchanged freely between Granada, Udinese and Watford ever since Pozzo took over Watford in 2012, and the Italian could feasibly sign Sinclair on the cheap for either Granada or Udinese, before moving him over to sister club Watford.

It's a strategy that could cost Liverpool a considerable chunk of money, and will give the Pozzo detractors plenty of ammunition, given that many fans in England oppose his ability to move players between his three top clubs.

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