FIFA will implement new rules on player loans from July 1, 2022 in a bid to prevent the stockpiling of talent by clubs and restore competitive balance between big clubs and smaller clubs across football leagues.

The new set of rules will bring about several changes, starting from the 2022/23 season itself.

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What do the new rules say?

FIFA’s new rules cap the total number of players a club can loan out in a season to six, something that is currently uncapped.

However, this change will be introduced gradually: in the 2022/23 season, the number of players a club can loan will be capped to 8. In the following season, that number will come down to seven, and hit six in the 2024/25 season.

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Additionally, clubs will only be allowed to loan a maximum of three players from one club.

The second major change is in the structure of loan deals. All player loans are required to last two transfer windows at least, and cannot extend beyond a year. Each move must also be accompanied with written documentation detailing the duration of the deal and the financial nuances.

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How do the new rules change things?

The first major change – capping the total number of player loans – is expected to affect big clubs that have frequently been accused of ‘talent hoarding’. Given their vast financial resources, big European clubs often hoard young talent, send them out on loan, and capitalise on the gains if the loaned out player performs well.

Some notable ones include the likes of Real Madrid, Atletico Madrid, and Chelsea, each of whom had more than 20 players out on loan last season. Serie A side Atalanta, meanwhile, had more than 60 players out on loan!

By liming the number of players a club can send out on loan, bigger clubs may well be forced to reduce their player counts, especially as the cap becomes six two seasons from now. In other words, these departures are likely to benefit other clubs by expanding the talent available on the market.

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Are there any loop holes?

While the new rules cap the total number of players a club can loan out to six, this only applies to players aged 21 years and above.

Loanees below 21 will not be considered under the new rules, and remains uncapped.

Exemptions will also exist for ‘club-trained’ players, a term on which there is not much clarity at the moment. However, this is expected to be defined as players who have spent three or more years training with the club. Clarifications are expected as the rules come into effect.