Sure, it makes sense from everyone's perspective.
Let's just slip in some kind of re-selling clause, so if he turns out to be good EPL level player we can profit from it down the line .
They have a real chance of getting promoted, they know the price will be more in the summer and IF he has been playing as amazingly as thy say (ive not watched him but assuming he has) they are scared another promoted club or lower end PL would be in for him and would want to prevent some kind of bidding war like situation.