When a footballer is loaned to another club, there is no single rule determining who pays the player’s salary. The arrangement is normally agreed between the parent club, loan club and player and set out in the loan agreement.

1. Loan Club Pays the Full Salary

The receiving club can agree to take responsibility for 100% of the player’s wages for the duration of the loan.

Example:
A player earns R200,000 per month at Club A. Club B takes him on loan and agrees to pay the full R200,000.

2. Clubs Share the Salary

The two clubs can agree to split the player’s wages.

Example:

Player’s salary: R200,000 per month
Loan club pays: R120,000
Parent club pays: R80,000

This is common where the player’s existing salary is higher than what the loan club is prepared to pay.

3. Parent Club Continues Paying

The parent club can also remain responsible for the player’s salary while he plays for the loan club.

This may happen when the parent club wants the player to gain regular playing time but cannot find a club willing to take on his full wages.

What About the Loan Fee?

A loan fee and salary are separate matters.

For example, Club B could pay Club A a R5 million loan fee while also agreeing to cover 70% of the player’s salary.

The exact financial arrangement depends on the terms of the loan agreement.

Why Can’t a Loaned Player Play Against His Parent Club?

A loan agreement can sometimes contain a restriction preventing the player from playing against his parent club.

For example, if Kaizer Chiefs loan a player to Orlando Pirates, the agreement could contain a provision stating that the player cannot play against Chiefs during the loan period.

Why would clubs include such a clause?

The reasoning is generally to avoid a potential conflict of interest. The parent club still holds the player’s registration or contractual rights, while the player temporarily represents another team.

A clause could be worded along these lines:

“The Player shall not be eligible to participate, whether as a starter or substitute, in any competitive or friendly match in which the Loaning Club is an opposing team during the period of the loan agreement, unless otherwise agreed in writing by the Loaning Club.”

But Can Clubs Always Do This?

No.

This is an important distinction. Even if a loan agreement contains such a provision, it may not automatically be enforceable in every competition.

League, federation or competition regulations may prohibit or restrict clauses that prevent loaned players from participating against their parent clubs.

This is particularly relevant because football authorities may consider such restrictions a potential issue for sporting integrity and competitive fairness.

Therefore, the legality or enforceability of a “no-play” clause depends on the applicable competition regulations, national football rules and the specific contractual arrangements.

The Simple Explanation

A loaned player can have his salary paid by the parent club, the loan club, or both. Similarly, a loan agreement may attempt to restrict him from playing against his parent club.

However, the contract between the clubs is not the only thing that matters. The relevant league and competition regulations can determine whether such a restriction is actually permitted.

In short: the loan agreement sets the financial and sporting terms, but those terms must comply with the rules governing the competition.