Erik Lira's move to AS Monaco from Liga MX club Cruz Azul collapsed at the 11th hour after the French club failed to free up a non-EU spot to register the Mexican midfielder.
Lira was set to fill the spot of Folarin Balogun at Monaco but the United States striker's proposed transfer to Everton collapsed late on Tuesday night ahead of the deadline in France.
Sources told ESPN that Balogun walked away from the deal and left Everton's training ground after both clubs had renegotiated terms of his contract due to concerns over the player's medical.
Lira, who shone for Mexico at the 2026 World Cup, had attracted interest from other clubs in Europe, including Sunderland, but had given priority to Monaco.
"It was a promise we made to Erik that we would support him if an offer came in from Europe," Cruz Azul president Víctor Velázquez recently said.
"It was his dream to play in Europe."
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Cruz Azul are working against the clock to find another option for Lira, who has offers from Russian clubs.
On Wednesday, Monaco CEO Thiago Scuro said the failed move was unavoidable given the Balogun situation.
"We were very saddened by the situation regarding Erik Lira," Scuro said during a news conference on Wednesday. "The agreement was ready. The player was ready to make the move. Only one final step remained, but the agreement was conditional on Balogun's departure, which would have freed up a non-EU player slot in the squad."