It means pretty much what it says. They loan him for a year, then buy him.
It's of letting Valencia get him now, but not have to pay until later which probably suits their accounts.
Ideally, we'd probably like the money right now, but in the long run it doesn't matter too much. It's a good deal and we;ll get the money later.
Some of you might be saying "why not sign him now and structure the payments so they don't pay until later?'. Effectively that's what is happening albeit legally it's still a loan and not a signing which I assume suits some regulations in Spain...
However, there's also a subtle benefit to us too... there MIGHT be a clause that allows us to keep him. e.g. Valencia are obliged to buy IF we don't want him, but if we want to keep him (and he sorts out any 'issues' he might have) then, we have the best of both worlds... we get the money we've already agreed on, or keep him.
All seems pretty decent business to me.
Doesn't matter whether we get the money now or next year. It's treated as income for this year as far as FFP is concerned. And I'm sure the Sheik's bank account won't go into overdraft for the sake of £24m.
It's being done this way, as already stated, because Valencia don't yet have the cash as the takeover hasn't gone through yet. Even if it never goes through, and Valencia have to pay us off at 10 shillings a week, it is still counted as money we've received in this financial year.