FIFA set to impose restrictions on clubs' abilities to loan out players

FIFA has announced that they will limit clubs' abilities to loan out players over the age of 22 in an attempt to ensure that future moves have "a valid sporting purpose for youth development."
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FIFA has announced that they will limit clubs' abilities to loan out players over the age of 22 in an attempt to ensure that future moves have "a valid sporting purpose for youth development."

The move, which was revealed on Thursday, comes as part of a wide-ranging effort by football's governing body to reform the way in which transfers between various clubs are conducted, and to help ensure the development of young talent, following a meeting of its committee stakeholders. 

The change to current system, which was approved by representatives of various clubs, players, leagues and national associations, will see teams be able to loan out just 8 players per season of the age of 22 or over, with the same figure applying to teams looking to take in players on loan.

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This will come into action by the start of next season. The number will be reduced to six by the 2022/23 season, subject to approval from the FIFA council. 

FIFA say they expect individual member associations to announce similar rules for domestic loans, as the FIFA mandate only covers loans between players in different leagues.

They also said that they will introduce a system to financially reward teams who develop young talent which are snapped up by other teams at a young age and go on to complete expensive transfers later in their career. This fund will be financed by a 1% levy on all transfer fees.

Football stakeholders agree further steps in the reform of the transfer system
▶️https://t.co/1UdHY4twl6 pic.twitter.com/gZD1NgtXBV

— FIFA Media (@fifamedia) February 27, 2020

"This modernized system will encourage and reward the training efforts of clubs and, as payments will be automated via the new FIFA Clearing House, it will ensure that training compensation is actually paid, which is often currently not the case," FIFA said in a statement. 

The new restrictions on the loaning out of players will likely frustrate some of Europe's top clubs, many of whom have legions of players temporarily playing on loan for other teams in various leagues around the world.

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English Premier League side Chelsea, for example, are famous for their so-called 'loan army' and currently have 29 contracted players currently playing outside of their parent club — with at least 10 of those over the age of 22. 

In 2015, it was reported the Serie A side Parma had an incredible 226 players on their books, many of whom were loaned out from the club. The massive figures of their playing staff was said to have contributed massively to financial strife which saw them assemble debts of around £144 million, which resulted in their demotion to the fourth tier of the Italian football.