Regulator: English Football “Dangerously Exposed” to Collapse
(MENAFN) English football’s finances are “dangerously exposed,” the Independent Football Regulator (IFR) said Tuesday, warning in a landmark report that most clubs are operating close to financial collapse.
The regulator’s State of the Game report found that 94% of clubs in England’s top five leagues lost money in the 2025-26 season. More than 60% of clubs in the English Football League (EFL) and the National League were technically insolvent.
The IFR said a “dangerous cocktail” of mounting debt and growing reliance on owner funding threatens clubs and their supporters.
Survival figures underline the risk. Two-thirds of clubs (66%) could not last 90 days without fresh money from their owners, and 29% said they would not make it past 30 days. Sixty percent had no business plan at all.
“Seventeen clubs are now trading in such a way that if their players played for free, their non-playing costs would mean they would go bust,” IFR chairman David Kogan told a leading British broadcaster. “Thirty-two clubs are operating on only 30 days’ cash. If the owner chooses not to pay cash at the end of the month, those clubs go bust.”
Kogan said the findings strengthen the case for reform before a deeper crisis hits.
Gulf between divisions widens
The report also exposed deepening inequality across the English football pyramid. The average Premier League club now earns more than eight times as much as its average Championship counterpart.
The IFR said the parachute-payment system for relegated Premier League clubs encourages Championship sides to overspend and pushes player wages higher.
The regulator also warned that rising net transfer debt, deferred transfer payments and transfer financing are binding clubs, owners and lenders together. That raises the risk that trouble at one club could spread across the game.
“Nobody in football for 100 years has believed that football was trading in a solvent and effective state,” said Kogan. “But I think now where there’s so much more money involved, the extremes get more extreme.”
The IFR said the foundations of the English football pyramid are under “intense strain” and require urgent reform.
The regulator’s State of the Game report found that 94% of clubs in England’s top five leagues lost money in the 2025-26 season. More than 60% of clubs in the English Football League (EFL) and the National League were technically insolvent.
The IFR said a “dangerous cocktail” of mounting debt and growing reliance on owner funding threatens clubs and their supporters.
Survival figures underline the risk. Two-thirds of clubs (66%) could not last 90 days without fresh money from their owners, and 29% said they would not make it past 30 days. Sixty percent had no business plan at all.
“Seventeen clubs are now trading in such a way that if their players played for free, their non-playing costs would mean they would go bust,” IFR chairman David Kogan told a leading British broadcaster. “Thirty-two clubs are operating on only 30 days’ cash. If the owner chooses not to pay cash at the end of the month, those clubs go bust.”
Kogan said the findings strengthen the case for reform before a deeper crisis hits.
Gulf between divisions widens
The report also exposed deepening inequality across the English football pyramid. The average Premier League club now earns more than eight times as much as its average Championship counterpart.
The IFR said the parachute-payment system for relegated Premier League clubs encourages Championship sides to overspend and pushes player wages higher.
The regulator also warned that rising net transfer debt, deferred transfer payments and transfer financing are binding clubs, owners and lenders together. That raises the risk that trouble at one club could spread across the game.
“Nobody in football for 100 years has believed that football was trading in a solvent and effective state,” said Kogan. “But I think now where there’s so much more money involved, the extremes get more extreme.”
The IFR said the foundations of the English football pyramid are under “intense strain” and require urgent reform.
Legal Disclaimer:
MENAFN provides the
information “as is” without warranty of any kind. We do not accept
any responsibility or liability for the accuracy, content, images,
videos, licenses, completeness, legality, or reliability of the information
contained in this article. If you have any complaints or copyright
issues related to this article, kindly contact the provider above.
Comments
No comment