A loan to buy would be best for Chelsea but I can't see Real Madrid sanctioning such a deal. Yes, the reported price is mad but what price isn't atm? Also we'd only sign James if Conte wanted him, and if Conte wants him that's good enough for me.
Griezmann is still the dream but I'd happily take James instead.
Honestly I could see them going for it. Its a calculated gamble but if James goes on loan and does well, all of a sudden you will have a lot more interest and be able to negotiate a better price at your leisure in the summer.
I suppose it all depends on whether there is any club who is willing to match the price Madrid want right now.