It's being reported that City will receive a €4.5 million loan fee with a €1.5 million if the move to Fiorentina is made permanent.
From a financial perspective it is another savvy move for City, getting both a loan fee and an additional amount (similar to Gareth Barry with Everton) if he moves there in the summer. For Richards it was a move he had to make. It has been suggested he turned down moves to other Premier League clubs, but regardless he gets a move where he can play in the region of 25-30 games this season that will give him the much need and consistent playing time he so sorely needs to get his career back on track.
From there, in the summer he will be a free agent where all being well he will have further long term offers to choose from but if the loan is a success there is no reason why a long term switch to Serie A shouldn't be made.