If the transfer does happen, I'd say Chelsea made a good transfer because Palmer is 21 years old and a talented Englishman in the midfield. It is unlikely that he will be in the squad at Manchester City. Still, he could remain a good substitute for Manchester City, which plays in several tournaments at the same time. I wonder how he will perform if he goes to Chelsea.
I don't understand why Chelsea would be interested in signing this player I checked his game statistics last season but do not see anything special, he played 14 games and only contributed with 1 assist. Besides that, I think $40 million is a high price even though he is considered a young player but his capacity has not been tested, maybe Mauricio Pochettino saw something in him that we don't know but I personally think it risks wasting money and burdening the club, I hope I'm wrong.