For those that don't know the current MLS rule, simply stated says that two teams affiliated with the same owner cannot Loan a player from one to the other at a reduced salary level. Obviously the rule is in place to maintain a competitive balance between teams that have (a benefactor) and ones that don't. However, two teams that are not affiliated can loan a player from Team 1 to Team 2 with Team 1 picking up nearly all of the salary (what a true loan is around the rest of the world).
This is why the recent Loan attempt between MCFC and NYCFC for Demichelis fell through - to complete it, Demichelis' salary would place him in DP status but NYCFC does not have an open DP spot, and MLS would not allow MCFC to absorb/pay the majority of the salary to keep him below DP status.
However, nowhere is there a rule stating that Team 1 (MCFC) cannot loan a player to Team 2 (Feeder team in non-EPL league), and Team 2 loans a separate player to Team 3 (NYCFC). Many big clubs have non-official agreements with Feeder teams, one of the best examples is ManUtd & Royal Antwerp. But in this case, MCFC could send a player to Team 2 to cover for the loss of their player when they are loaned to Team 3 (NYCFC) for the cut-rate of $60K/year with Team 2 picking up the difference. MLS could not stop the Loan citing Affiliation/competitive advantage because Team 2 is not part of CFG (i.e. there is a break in the chain).
Pushing the boundaries of rules is the only way any team in any league stays competitive - (e.g NE Patriots - don't like them but admire their tenacity to discover variations on how to apply rules or actual loopholes). MLS cannot close this loophole because how would they determine which loans are using it and which are not - it's just not possible, especially if the informal arrangement is with a wink, nod, and handshake and the Loan between Teams 1&2 take place after Teams 2&3. Unfortunately, I doubt NYCFC's front office has thought of this to suggest to CFG......
This is why the recent Loan attempt between MCFC and NYCFC for Demichelis fell through - to complete it, Demichelis' salary would place him in DP status but NYCFC does not have an open DP spot, and MLS would not allow MCFC to absorb/pay the majority of the salary to keep him below DP status.
However, nowhere is there a rule stating that Team 1 (MCFC) cannot loan a player to Team 2 (Feeder team in non-EPL league), and Team 2 loans a separate player to Team 3 (NYCFC). Many big clubs have non-official agreements with Feeder teams, one of the best examples is ManUtd & Royal Antwerp. But in this case, MCFC could send a player to Team 2 to cover for the loss of their player when they are loaned to Team 3 (NYCFC) for the cut-rate of $60K/year with Team 2 picking up the difference. MLS could not stop the Loan citing Affiliation/competitive advantage because Team 2 is not part of CFG (i.e. there is a break in the chain).
Pushing the boundaries of rules is the only way any team in any league stays competitive - (e.g NE Patriots - don't like them but admire their tenacity to discover variations on how to apply rules or actual loopholes). MLS cannot close this loophole because how would they determine which loans are using it and which are not - it's just not possible, especially if the informal arrangement is with a wink, nod, and handshake and the Loan between Teams 1&2 take place after Teams 2&3. Unfortunately, I doubt NYCFC's front office has thought of this to suggest to CFG......