Football Loan: Terms and Condition Between Clubs and Players

In football, there are usually two major ways of transferring players. Players move to other clubs either on permanent transfers or temporarily on loans. In the latter, the buying club does not buy the full rights of the players while in the former the full rights of the players are bought. According to trending football news, the loan system is utilized by clubs with lesser resources while most wealthy clubs prefer to purchase players on a permanent basis except in a few cases.

This article will be paying special attention to the the processes involved in the loan system of transfers. The terms and conditions which are considered in making a loan transfer for players moving clubs on a temporary basis are analysed here.
For the subject matter to be understood, the concept of loan ought to be properly understood. A loan, in football terms, technically refers to a situation where a given player is allowed to represent the colours of another team on a temporary basis which at time ranges from a few weeks to all season-long and in some cases may last for multiple seasons.
The loan system is popular for many reasons but most of all because it is the only means through which clubs get to transfer players, for whom there may still be a need for, while still retaining the permanent rights over the player.
What this means is that, the loan system offers club a platform to ship out players, who at the time are considered surplus to requirements but have a role to play in the future for the club.
Another reason why the loan arrangement is considered pertinent is because, at times it provides clubs with a means to play round the transfer window. Sometimes a club may be cash strapped which will make acquisition of a player on a permanent basis a problem, so a loan agreement with a view to a subsequent permanent transfer may be drawn up to enable the club get their wish.
There are two types of loan contracts. In the first, bigger clubs reach agreements with smaller clubs called ‘farm clubs’ and when the need arises, players (mostly prospects)  from these big clubs are sent to the ‘farm clubs’ to gain playing time or experience.
In this instance, the parent club, takes responsibility for the wages of the player being transferred. The ‘farm club’ is only obligated to provide a platform for the player to thrive by providing the player with playing time. An example of this loan system is the loan relationship between Chelsea and Vitesse Arnhem.
Chelsea, an English football giant, regularly send prospects to Vitesse, a relatively unknown Eredivisie side, to enable them gain playing experience. These players’ salaries for the duration of their loan contract are paid up by Chelsea who only expect Vitesse to offer the players the playing time that is not available in the parent club.
In the second type of loan contract, the Club intending to loan a player pays the parent club a given sum to get the player and are also required to pay up the wages of the player over the duration of the contract. This form of loan is most common with large clubs who intend to bring players on a temporary basis to cover up deficiencies in their squads. A good example is the transfer of James Rodriguez from Real Madrid to Bayern Munich.
In the Premier League , like most other leagues, players on loan are not permitted to play against the team which holds their registration. Because of this rule, Kurt Zouma, a Chelsea player on loan at Stoke won’t be able to face Chelsea in a league match involving the two sides.

This rule however changes in cup competitions where loanees are allowed to play against their ‘owning’ clubs  unless they have played for their owning club in that cup during that season. This happened in the Champions League in 2014 when Thirbaut Courtois, a then Chelsea loanee playing for Atletico Madrid was given authorisation by FIFA to play against his parent club in a semi final fixture.