Chelsea to write off £16m on deal for Mikel

Chelsea are ready to take a £16million loss on John Obi Mikel's transfer.

The Blues have reached an out of court settlement with Norwegian side Lyn Oslo of £100,000 over the money they paid out for the Nigerian midfielder in 2006.

The original £16m transfer had seen Lyn receive £4m while Manchester United were paid £12m for waiving their option to sign the player but Chelsea then discovered Mikel was fraudulently registered.

Chelsea are unlikely to turn their attention to United but will pursue Lyn's former chief executive Morgan Andersen, who was handed a one-year suspended prison sentence for forging the documents.