Oh it's all very predictable isn't it, Barcelona are interested in Isco and naturally he is interested in them. Real Madrid, however, obviously do not want him joining their major rivals so try every trick in the book to ensure it doesn't happen.
He isn't getting the major game time he wants, he isn't a first choice player and thus all this talk of him being important and a desire to offer him a new contract is merely a smokescreen, it's an attempt to stop him joining the Catalan side.
Real Madrid have been buttering him up saying nice things in the media about him, but the proof is in the pudding and if you are not being picked for the big games it is all flannel. While Isco states he will make a decision on his future at the end of the season, Real Madrid are now suggesting they will let him go for £10 million instead of the £30 million that has previously been quoted.
This is an attempt to make it affordable and encourage other top clubs to offer him a generous wage and signing on package. We know Juventus are interested, Manchester City and Manchester Unites, Tottenham and Arsenal make up just a few possible destinations. Of that group, you would expect Juventus or Manchester City to snap him up on at least double his current wages.
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