Philippe Coutinho agreed to a 70% wage reduction in order to go from Barcelona to Aston Villa.
The Brazilian international joined Villa Park on loan in January and made the transfer permanent on Thursday.
Coutinho was expected to cost £33 million, but Villa landed him for £17 million and substantially lesser pay.
He was earning £480,000 per week at the Camp Nou after arriving in a £125 million transfer from Liverpool in 2018.
If he hadn’t taken a pay cut, the 29-year-old would have struggled to fit into Villa’s compensation structure.
Coutinho will now earn £125,000 per week after signing a four-year contract, making him one of Villa’s highest-paid players.
It has been established that Barcelona has added a 50% sell-on clause.
In 16 games since coming late in the summer window, the former Liverpool player has scored four goals and registered three assists.
His friendship with manager Steven Gerrard is solid, and it’s probable that his former Reds captain had a significant factor in his decision.
Gerrard and Coutinho were teammates for two and a half years before the former went to the Los Angeles Galaxy in 2015.
Speaking after the transfer had been completed, Coutinho said: “I am really happy and excited about the present and future. I’ve been made to feel very welcome since day one.
“I’ve enjoyed it so much. I believe so much in the squad that we can achieve really good things next year and I am really excited for the next season already.”
Gerrard then praised Coutinho’s effect on Villa’s season, which now sits 12th in the Premier League standings with three games remaining to finish in the top half.
“This is a brilliant signing for Aston Villa,” he explained. “Phil is a model professional and his impact on the group has been very clear since he joined in January.
“With the way he conducts himself on and off the pitch, he’s also a valuable role model for our younger players who can only benefit from his experience. As we look to build towards next season, it is incredible to work at a club that executes its business so decisively and smoothly.”
Villa return to action on Sunday afternoon against Crystal Palace at 2pm.
