Johnny75
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Can't remember which club, but I'm sure I read recently they had someone employed just to watch their loan players. Probably Chelsea or Man City.
All clubs in the top 2 divisions employ people to look at their own loan players. It depends on the structure but in the top divisions it is usually youth team scouts/ coaches that aren't at youth team games as they are generally not playing at the same time as the first team.
The top clubs have always employed (at least in the last decade) first team scouts to go and watch their own loan players as it gives them the advantage of watching the other team too.