RocktheCasbah I understand the point but I think both of us are making arguments based on different potential circumstances (Jesus getting a long-term injury v not getting injured at all). My only qualm with your logic is that we can argue that about any position in the squad, no?
For instance, we have Jorginho as a Partey back-up now. If Partey gets injured at any point next season (which he is prone to), Jorginho will have to play all the minutes in his position next season. Same with Tomiyasu or Trossard and so on. We cannot have three players in each position.
I think the key to good squad management is having a high-functioning, lean but versatile squad. City seem to do that as well with having a core of 16/17 core players and that is what we should build towards. Think Bernardo who plays on the wing and in midfield, same with Foden, Ake, Stones etc. I can't think of many teams who have three players for a single position. The third choice is almost always a makeshift.
RocktheCasbah realise having written everything I have above that what is more likely to happen than anything else is that he will probably go on loan again - and I'd probably be okay with that. But sell him? Not yet, not for me.
And honestly, I will be fine with that. My initial point was that accommodating both in the squad might stall the development of Balogun especially after the stellar season he is having in France. Imagine going from scoring 20 goals in the season to not making the matchday squad and having to play with the U21s to stay match fit.
If we can get him to sign an extension and get him a PL loan, that would be a great option too. But he is going to want to play, that is for sure.