Rarely do we consider drastic changes to the bubble that is our American sports world. Over the last 30 years, there has been little to no massive change to the overall financial structure of any of our four major leagues outside of salary cap adjustments. However, the loaning of players could be an extremely useful asset for Major League Baseball's front offices moving forward, and at times, such changes are vital to the enduring struggle to improve our game. The loan system, part of the greater transfer system in European soccer, is a system where a player is temporarily moved to another team with the intent of returning to his parent club at the end of a certain, predetermined amount of time. The system is primarily used to move young players who play for large clubs, where they rarely see action, to smaller clubs, where they can gain key experience while helping that smaller club win. The loanee club generally pays that player's wages for the extent of the loan spell, opening possibilities for the loaner club in the transfer market, and often times, a player will be bought by the club he is loaned out to at the end of the spell. In baseball, the possibilities for this system display endless potential for young players as well as stars.
The use of the loan system creates mutualistic relationships during the season, as a team could loan out a player for the season or half-season in exchange for a prospect, cash or any other player, just like a trade. This would create higher profile moves around July 31st (the deadline would remain the same), as this allows more players to be available as half-year rentals than just superstars with a year left on their deal on a struggling team. For example, just imagine the possibility of the Angels getting a blue-chip prospect such as Willson Contreras of the Cubs for losing Mike Trout for the back half of a lost 2016. In theory, this could kickstart a team's rebuilding process, by helping losing teams avoid years upon years upon years of tanking (a la Houston Astros), while helping contending teams get a cleaner shot at winning it all, all the while providing a solution to the dwindling competitive balance around baseball. Additionally, boxed out players who can never seem to see everyday big league action can finally have a shot, such as Javier Baez. The Puerto Rican has major talent, but can't seem to see the field regularly due to the talent of his team, yet he would be a potential franchise cornerstone anywhere else. The Cubs want him to continue to grow as a baseball player; it's just difficult given the crowded situation currently on the North Side. Perhaps the Cubs send the Angels #5 outfield prospect Albert Almora along with Baez to guarantee that Baez will get playing time; they could even stick an at-bats requirement on him, for example requiring Baez to have at least 500 at-bats for the Angels to receive Almora. The possibilities are truly endless. It's a win-win scenario, Baez gets his everyday experience, and the Angels get a solid prospect as well as Baez' services in return. Additionally, the system could be used as a testing ground for future moves in the greater trade market. If the Angels absolutely fall in love with Baez' skills, maybe there is a clause in the loan deal that if the Angels give up one of their system's top-5 prospects, they can keep him permanently. Additionally, the most tantalizing prospect of this change is the fact that there is so much more the brilliant GM's around baseball would dream up with a tool such as this.
However, despite the great possibilities, there are limitations that need to be put in place. For example, a team should not be allowed to loan out or receive loaned players past the July 31st non-waiver trade deadline. This is to keep teams from loading up immediately before the Postseason by abusing the loan system by "back-loading" off of teams out of contention. For example, if a team is close in the Wild Card standings, they won't loan out a star if they are still in the race on July 31st, but they would be trying to loan a star to a playoff-bound club once their own fate is concrete after the season's end (assuming they miss the playoffs). Additionally, teams are not allowed to loan in more than two of MLB's top 35 players in terms of Wins Above Replacement (WAR) for that season. This is to ensure fair competitive balance in the Postseason, and to avoid teams "stacking the deck" just before the playoffs, so teams with deep farm systems will not be able to effectively yield an All-Star team in October. Conversely, the opposite requirement must also be fulfilled. A team may not loan out more than two of the top 35 players, to ensure we aren't seeing Angels spread all across baseball. Additionally, a team may not loan out a top 35 WAR player in consecutive seasons. Mike Trout should not have to play for the hapless Angels in the first half while he awaits his contending suitor at the deadline, which would devalue his effort for the parent club. Not to mention, for casual fans, it would be odd to see Trout playing for the Cubs, Giants and Dodgers in three consecutive Postseasons. Finally, a player with the right to reject a trade to either certain clubs or any club retains such rights in any loan situation, and service time rights do apply just as they would with trades. These limitations are to prevent abuse of the system and keep baseball from experiencing changes that are too drastic. Multi-season loans with greater benefits or rewards are also possible, and loan salaries would be required to count against the luxury tax threshold of the club that loans in the player.
To conclude, the loan system of European soccer could forever change the landscape of baseball. From the way we see rebuilding, to blockbuster deals, to competitive balance, the idea of a loan is a simple concept that could revolutionize baseball transactions. It's probably a long way from actually happening, but these things take time. Across the pond, soccer has been developing this system in leagues that have been around as long as the Majors, and it's still not perfect, but I believe it is a positive overall change for the game of baseball.
Article originally published last season on Halos Heaven, SB Nation's Angels affiliate.
