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To answer the 2nd question first, yes, they will be cup tied if they represent their loan club in a cup match.
As for the 1st question, yes, the loaned out player's wages are paid by the loan club. Perhaps you have only released your lower rated players on loan and have therefore not noticed their wages being absent from your wage bill as, typically, lower rated players demand lower wages.
Asked by Rob Morgan - 12 years ago