In football, a loan refers to a player temporarily playing under a different club other than the one he is contracted to. The terms of the loan vary accordingly. Some players are loaned out for a few weeks, while others for the entire season.
Reasons for Loan
There are various reasons why a player is loaned to a different club. Sometimes a club puts up a formal arrangement so that both parties are in agreement when it comes to a player’s wages, fees, and responsibilities.- Gain Experience
This occurrence is common among young players that are loaned to lower league clubs for them to gain experience and enhance their playing skills. In this case, the parent club, where the player has a contract on may either pay the wages of the player in full or in a certain percentage. This arrangement is sometimes referred to as a farm team wherein the role of the contractual club is to provide experience and train young players for them to successfully move to a higher level.
- Shortage of Funds
Another reason for taking a player on loan is if the club is short on funds but can still pay its wages. In other cases, the loaning club can also pay some of the wages of the player during the loan period. The terms of agreement vary on the arrangement between the parent club and the loaning club.
- Injured Player or Suspended
In some cases when a player is injured and is currently recovering or suspended, they are usually loaned out to other clubs. While the player is recuperating, the contractual club can help during the process. For suspended players, they normally wait out until their suspension is lifted or has finished serving its sentence.
- Transfer Window
While waiting for the final transfer to be processed, a player is often loan for an agreed fee. The Transfer window is the year wherein the player is waiting for the new club to compete for its registration through FIFA.
- Disputes
If a player is in dispute with his current club, they are often loaned to other clubs. This is due to having no other clubs wishing to sign a contract with them permanently.