I like Kovacic. He is a very solid midfielder, he can dribble, pass, tackle, and do all the bits that don't included scoring. He has made a few nice passes that led to goals as well, he is a very tidy player. I think the problem is that Kovacic and Jorginho can overlap responsibilities a little too much, which makes having both of them play redudant. Saying that though, I still believe that keeping a player like Kovacic is very important, as without him Jorginho is the only player of that style in the squad, leaving Barkley and Cheek to fill that gap and those two are far too offensive minded to play together in a midfield. In fact I'd go as far to say if Jorginho and Kovacic overlap, so do Barkley and Cheek.
I'm happy with the transfer, I think it is a fair market value, especially considering that Real Madrid could easily gouge Chelsea for having the ban in place. OVERALL it could be a minor blessing in disguise having the ban, as it forces the club to use what it has, and that could lead to improved performances without the yearly upheaval. Though don't hold your breath.