The global soccer system is governed by the transfer window. There are two periods every year when players can be transferred or loaned between teams.
But what exactly is a loan in soccer? And why do players choose to go on loan to other teams? Let’s find out now.
What does going on loan mean in soccer?
A loan in soccer is where one team allows one of their players to transfer to another team on a temporary basis. Loan deals can be anything from a month to several years, depending on the type of loan that is negotiated. Players typically go on loan if they’re struggling to get game time at their current clubs or if they’re unhappy with their current situation for any other reasons. We take a look at what loans mean in soccer in more detail below.
What’s the point of the loan system?
The whole point of the loan system is to enable soccer players to transfer from one team to another temporarily. This is beneficial for so many reasons and can help players and clubs in different ways.
Primarily, loans in soccer help players, as it allows them to get more game time. It’s common for players from some of the biggest clubs in the world to spend some time out on loan at a smaller club before taking to the field for their main team.
For instance, David Beckham went on loan to Preston North End in 1995 to gain some first experience. Competing in the bottom division in England, his time at Preston was a far cry from the level of the game he would go on to play at!
But Beckham’s example is common in football, and the loan system provides younger players the opportunity to receive some first-team experience when they’re not quite ready to appear for their clubs.
The loan system also enables players to move to another team when they’re unhappy with their current situation at their club. For instance, in January 2022, Anthony Martial left Manchester United on loan to Sevilla, citing more game time as the reason that he left Old Trafford.
Sevilla couldn’t necessarily afford to pay the transfer fee to prise Martial away from Manchester United, but they were able to agree on a loan arrangement to have the player join their squad until the end of the season.
Essentially, loans are win-wins for clubs and players, which is why they’re a popular arrangement in soccer.
Do clubs have to pay to loan players?
Although they’re not signing a player permanently, clubs are usually still required to pay a loan fee to secure the services of a player on loan. While this can be a few thousand dollars in the lower leagues of European soccer, it can rise to multi-million dollar amounts at the top of the game.
The table below is a list of the most expensive loan fees in history, and it will probably surprise you to see how much soccer clubs are willing to pay to borrow players!
| Loan Deal | Loan Fee (USD) |
| Philipe Coutinho, Barcelona – Bayern (2019) | $9.6 million |
| Gonzalo Higuain, Juventus – Chelsea (2019) | $10.2 million |
| Gonzalo Higuain, Juventus – Milan (2018) | $10.2 million |
| Mattia Destro, Genoa – AS Roma (2012) | $13 million |
| Nicolo Barella, Cagliari – Inter (2019) | $13.6 million |
| Carlos Tevez, West Ham – Manchester United (2007) | $14.4 million |
| James Rodriguez, Real Madrid – Bayern (2017) | $14.7 million |
| Duvan Zapata, Sampdoria – Atalanta (2018) | $15.9 million |
| Gio Lo Celso, Real Betis – Tottenham (2019) | $18.1 million |
| Kylian Mbappe, Monaco – PSG (2018) | $51.1 million |
As you can see, European clubs have paid incredible amounts of money to loan players in the past. For example, Gonzalo Higuain was loaned to two different teams for over $20 million in just two years. Incredible!
The reality with the loan system is that many of the deals serve as precursors to future transfers, as was the case with many of the above deals.
So when the team goes into complete the transfer, the loan fee that they’ve already paid will be taken into consideration by the selling club.
Who decides on loans in soccer?
The decision about whether to authorize a loan is a joint one. The two clubs need to be in agreement first and foremost, which is a decision made by the boards. The coach also has to agree to let their player go, and the opposing team has to agree that they’re willing to take the player on loan.
Finally, the player has to agree to the loan, as they can resist and refuse to leave the club if they wish. So, all parties have to agree for the loan to go through, or it can fall through.
Is it easier to secure a loan than a permanent transfer?
One of the reasons that loans are super popular in soccer is that they’re typically easier to put together than a transfer. Also, they’re not permanent, meaning that clubs can move players out of their teams for a short time, for whatever reason.
In soccer, it’s common for bigger clubs to develop relationships with smaller teams, mainly for the purpose of setting up loan deals.
This allows the big teams to send their fringe players to the small teams to get experience, benefitting both teams. While there are exceptions to the rule, most loan deals are mutually beneficial and much easier to process than permanent transfers, which are often fraught with difficulty and controversy.
What type of players benefit from going on loan in soccer?
While it really just depends on the circumstances at the time of the loan, the following three groups of players typically benefit from loans in soccer more than others:
Youth/Academy players
Throughout world soccer, teams have large youth teams, and academies filled with players who they hope will take to the first team one day.
However, to get them some first-team experience, it’s common to send them out on loan to teams competing in smaller leagues.
You will find that the biggest teams in the world have 10+ players out on loan at any given time, as they’re trying to fast-track their development and prepare them for the first team.
Unhappy players
There are lots of reasons why soccer players become unhappy with their experience at their current club. It could be that they’ve fallen out with the coach, or perhaps they’re not getting the game time that they want.
Whatever the reason, a loan deal is a great arrangement for clubs and players, as it allows them to leave the club temporarily.
If they enjoy their loan experience, they may well sign for the other team permanently, or things might have changed at their current club, and they will once again become a valued member of the squad.
Players who have been injured
Finally, the third group of players that benefit from loans in soccer is those who have been injured for a long time. Recently, Aaron Ramsey secured a loan move from Juventus to Rangers after he had been injured for a while and fallen out of favor in Italy.
The loan provides players with the chance to regain their fitness and sharpness, something that is an issue for people who are returning to soccer after a long time out.
Ultimately, loans can benefit all sorts of players, but the three groups of players above are those most likely to benefit from the arrangement.
Do loans happen in amateur soccer or just the pro game?
Loan deals only happen in the professional and semi-professional game because it’s an arrangement based upon a player’s contract. In amateur soccer, players aren’t under contract and can play for whichever teams they like!
You can move from league to league and team to team in amateur soccer as you aren’t confined to the terms of any deal. As such, loans are unnecessary in the amateur game.
The verdict: Reasons why soccer players go on loan
As you now know, loans in soccer often occur for many different reasons. Seen as a good alternative to a permanent transfer, loans can help players at different stages of their careers.
So, if one of your favorite players goes out on loan, they’re probably looking to try something new or overcome an injury.
Regardless of the reason that loans are set up, they’re ideal for players and clubs alike and are likely to be popular long into the future in soccer.