Just not true.
It is coming up on 4years when he started his first stint with us. Before that loan spell, most thought he was not up to European standards due to his 2 failed stints in Germany. Before he came for loan #1, he signed a 4year contract extension with LA. At that time, LA had Beckham and Donovan and the MLS had high hopes of increasing their visibility in a World Cup year.
After he signs that contract, he is allowed to go on loan to keep up fitness before the cup. He has an excellent loan spell and World Cup. LA and the MLS were publically adamant on not letting him go anywhere and he was under a newly signed contract.
After the second loan spell was the only spot that it seemed it may be possible to sign him. Remember though, MLS contracts are with the league, not the team. If Everton wanted to buy, it was from the league, not LA. The league is intent on raising the values of heir players, so there was no way that everton was not going to get him cheap. In fact, if you remember, man city was publcally showing interest at the time too. It was rumored that unlike everton, man city was willing to pay the MLS's price, but Donovan was only interested in Everton. With value set from the mls (who did not want to sell the top American star playing with their top contending team with their top celebrity player but had not gotten a title) and the price validated by mancity, when everton were unwilling or able to meet that price, Donovan and mls both prefer he stay, so he did.
Donovan and even LA had very little power in the whole thing.
All Donovan could do is sit out or see out his contract... And note if you will, that he has now done both of those things, and that 4year contract is up in a few months. He had plenty of ambition, but the damn contract he had to sign to be allowed to go on that first loan proved impossible to get out from under.