No — that’s not true.
A loan fee and wages are two separate things in football finance, both in how they’re negotiated and in how they’re accounted for.
Loan Fee – Paid to the parent club as compensation for letting the player go on loan. It’s a lump sum, agreed upfront, sometimes payable in instalments.
Wages – Paid to the player (via payroll) for their work, even if the money is routed through the parent club first. In many cases, the borrowing club reimburses the parent club for a percentage of these wages.
If a borrowing club pays £2 million for the loan and £80k/week towards wages, that’s two different payments:
1. £2 million → Parent club (loan fee)
2. £80k/week → Parent club or directly to player (wage contribution)
Clubs do not disguise wage contributions as “loan fees” — they’re treated differently in contracts and in accounting. Loan fees are recorded as transfer-related income/expenses, while wages are part of payroll costs.
If someone insists “the wage we’re covering is actually just the loan fee,” they’re either misunderstanding or oversimplifying the arrangement.
If you want, I can break down an actual example contract from a real Premier League loan that shows the two line items separately.