Posted this under a related thread. Perhaps more appropriate here.
Assuming that the explanation given in The Guardian (<a class="postlink" href="http://www.guardian.co.uk/football/2010" onclick="window.open(this.href);return false;">http://www.guardian.co.uk/football/2010</a> ... goalkeeper) is correct and that the FA have stymied the deal, then it is not merely unfair, but careless of the contractual rights and commercial expectations of the clubs.
When Club X loans a player to Club Y it is, at bottom, because both clubs see some commercial advantage in it. X, for a time, can share some of its investment in a player and Y gets a player that it might not be able to afford otherwise. The clubs do not have to consult other clubs that might have an interest in whether the loan to Y might improve that club league position and whether X's financial strength is improved. Nor does the FA give other clubs a right of veto in the question of arranging a loan
Given (pardon the pun) that the FA recognizes that loan arrangements can be unwound in the case of emergency-a fact seemingly established to the FA's satisfaction in this case- the same considerations that operated when the loan agreement was entered into arise again-whether it is to the commercial advantage of both clubs to terminate the loan agreement prematurely upon the occurrence of an event which gives rise to premature termination.
As JH has successfully done the job at B/ham for which he was loaned and there is no further advantage in retaining him, that club has a commercial interest in premature termination of the agreement, as does City, for obvious reasons. The consideration for letting JH leave early is something to be negotiated between City and B/ham in the open commercial market until a price is arrived at which is to City's and B/ham's joint satisfaction, even though B/ham is in the driver's seat.
I cannot, for the life of me, at the moment see what third party interests have to do with it. City loaned JH out knowing that FA rules provided for his possible recall in the event of emergency cover being required. All the other clubs knew of the rule and could benefit from it in the case of emergency. It is really incumbent on the FA to explain rationally why its discretion to approve/disapprove was exercised on the basis of third party interests who could likewise plead 'emergency' and attempt to renegotiate a contract to serve their commercial interests. It cannot be that the FA thinks that some clubs have 'more worthy' commercial interests than other clubs.
If the FA explain this move then there is the appearance of bias and confidence in the institution takes yet another knock.