The primary goals of the overhaul are claimed to be the prevention of wealthy clubs from stockpiling talent, the encouragement of youth development, and an improvement to the league’s competitive balance.
In 2017, some members of FIFA became concerned by wealthy team stockpiles of the best talent in the sport. The effect on lower tier clubs was higher prices and more competition for the remaining talent, and their need to secure players on loan, who wouldn’t feature for their parent club, to field a competitive side.
The plans will take effect in July and will limit teams to eight players loaned in and out for the 2022-23 season. The next season, the limit will be seven, and in the subsequent season, it will drop to six, where it will stay.
The length of loan spells and business between favored-trading partners in separate countries will also be limited. Short-term loans will be banned, minimum loan terms will be two transfer windows, and limited to a year in length. Favored-trading partners will be limited to three players from the same club going in or out through loan.
The curb on player loan transfers won’t apply to players under the age of 21, and homegrown players. For clubs with well-funded and sprawling academies, they’ll still be able to send out a mass of players.
The loan system proposal will go to the next meeting of FIFA’s ruling council and will apply for international deals beginning July 1, 2022.