Loan agreements in MLS work similarly to loans in global soccer. A club can temporarily transfer a player to another team — within MLS or to an international club — for a specified period. The loan agreement specifies which club pays the player's salary, any loan fees, and whether there is an option or obligation to buy the player at the end of the loan.
Intra-MLS loans require league approval and follow specific roster rules. Loans to teams outside MLS are more flexible and have become increasingly common, particularly for young players seeking more playing time. Short-term loans within MLS can help teams address roster needs during the season, while longer international loans give players exposure to different playing styles and competitive environments.