According to TYC, Franco Escobar has been officially announced as a new signing for Newell's, where he will begin his third spell. Escobar signed a contract for 18 months. Coach Frank Darío Kudelka prioritized the transfer because of the player's defensive versatility. However, an administrative issue must be resolved for Escobar to be officially registered. Newell's is required to lift a transfer ban by paying a debt of almost 500,000 dollars associated with Guillermo May. The club anticipates resolving this before the tournament begins so that Escobar can be available from the first match.

Argentinian right-back Franco Escobar, 31, is returning to Newell's after his period with Peñarol, and an agreement exists for him to sign an 18-month contract. The move was reportedly a priority for manager Kudelka, who had spoken with the player. Escobar joined Peñarol in January 2026 and made 15 appearances, providing one assist, in the 2025/2026 season. According to Transfermarkt, his current market value is €600k.