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Loan Deals and Fairness

19/1/2015

 
PictureJohn O'Shea in Royal Antwerp jersey
By Robbie Butler

Loan moves are something that appear to be becoming more apparent in football these days. No doubt during the January Transfer Window many clubs will sign players on loan, with the option to buy. This gives interested clubs a chance to ‘sample’ what they are getting before having to commit to any financial arrangement - a way of equalising information between the buyer and the seller in some sense. 

Historically, loan deals where arranged for a number of reasons. Firstly, they could arise because a club was ‘stuck’ and needed a player to fulfill a fixture. This was back in the day when squads rarely went beyond 14-15 players. A second reason was due to a player’s unhappiness at a manager, teammate, etc. The loan deal offered them a route out of a club without the need for money to exchange hands between a third party and the players club. Lastly, loan deals could be arranged for young players in need for first team experience. The loaning club would be one based in the lower divisions, often of a domestic league.

While these options are still exercised, a new sort of loan has emerged. During the 1990s and 2000s clubs such as Manchester United, Arsenal and Chelsea developed arrangements with clubs to become ‘feeders’. In the case of United, Belgium’s Royal Antwerp acted as a feeder. For example, John O’Shea went on loan to Belgium during the 2000-2001 season before returning to United.

PictureBecks poses in his Preston North End kit
The interesting thing about these arrangements was that they were required because inter-Premier League loan deals were not permitted. This is no longer the case. Since the mid-2000s we have seen a new sort of loan deal emerge. Premier League clubs, particularly, the 'Big Six' have learned that instead of sending a player to Preston (David Beckham), Antwerp (O’Shea) or Swansea when they were in the 4th tier of English football (Frank Lampard), you could loan them to a Premier League club and in the process get them real experience at the level they were required to operate at. Danny Welbeck (Sunderland), Kyle Walker (Aston Villa), Victor Moses (Liverpool and Stoke), Andre Wisdom (West Brom) and Jack Wilshire (Bolton) are/have all experienced this arrangement.

Picture
The scenario raises a number of questions however, the biggest of which centres on fairness. When Chelsea or Liverpool send a player on loan to another Premier League club they cannot play against their parent club (See Premier League rule M.6, section 7.2). Fabio Borini scored a penalty last season against in a 2–1 win away at Chelsea to kept his parent club Liverpool two points clear of Chelsea at the top of the Premier League table. Borini was not permitted to play against Liverpool in Sunderland’s 2-1 defeat at Anfield in March. 

The big clubs appear to be adopting this approach frequently. The table to the right lists the clubs players on loan for each Premier League club and the number of players on loan to other clubs in the same division. No surprise which clubs are at the top of the list. 

Whether this approach is fair is questionable. Financial fair play rules are just one the reasons for this and might explain why this approach is likely to prosper in the future.



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