As for Kovacic, the talented midfielder struggled for game time at the Spanish club last season as he grew more frustrated and disillusioned with life at the Santiago Bernabéu Stadium.
However, the European champions reportedly had a late change of heart so the 23-year-old stayed, signing a new contract in Bilbao.
Before Alisson moved from Roma to Liverpool in July, Gianluigi Buffon had spent 17 years as the most expensive goalkeeper in world football.
Kovacic could thrive and return to Real Madrid as a better player, while Loftus-Cheek could suffer with his first team opportunities limited.
Kepa becomes the sixth Spanish member of Chelsea's squad, joining Cesar Azpilicueta, Cesc Fabregas, Pedro Rodriguez, Alvaro Morata and Marcos Alonso, and he says his global team-mates played a big part in selling the move to him.
Chelsea said in a statement Wednesday the two clubs "have agreed terms for the permanent transfer of Thibaut Courtois subject to the agreement of personal terms and passing a medical".
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"A huge thank you to all my teammates and technical staff over the past four years who I shared this success and unbelievable moments with, both on and off the pitch".
In January, Madrid were set to meet his then-release clause of €20m as it looked increasingly unlikely that Navas would be renewing his contract with Madrid.
"Of course I know some of the players in the current team from the Spanish national side, even at the World Cup", he said.
Yes, they always come back strong after a disappointing campaign, yet this one will be a lot different to those where they won the English Premier League.
"I am very happy to continue in what I consider my home", Kepa stated at the time.
Kepa is Spain's number two behind Manchester United's David de Gea and has one worldwide cap.
"Over the next seven years, I expect to achieve a great growth, personally and collectively, and I hope we will win many, many titles".