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Oh I don't dispute that it's going on involving overseas clubs but I don't think that it could be done using another English club...

They are (were?) the supposed feeder club, to a foreign team. Different scenario and I don't think it was ever formal (just painfully obvious).

Pretty sure it's spectacularly against the rules. I could be wrong (and am happy to be shown so) but I'm fairly certain feeder club agreements aren't currently permitted within the English game, and that only really involves a formal agreement around loaning players. To actively buy players...