Independent regulator warns English football is standing on the edge of financial disaster

English football faces a systemic financial crisis, the Independent Football Regulator (IFR) has warned in its first State of the Game report, published today, which found that 94 percent of the top 116 clubs across the Premier League, EFL and National League are currently loss-making.

IFR chair David Kogan described the situation as a “massive contradiction” at the heart of the English game. “While some of our clubs are among the richest and most competitive in the world, others are standing on the edge of financial disaster,” he said. “Skyrocketing revenues have been outpaced by costs, which in turn have pushed up debt, loss-making and an over-reliance on owner funding.”

The 245-page report reveals that nearly two-thirds of EFL and National League clubs are technically insolvent — meaning their liabilities exceed their assets — and that more than a quarter of clubs would be unable to survive for more than 30 days if their owners withdrew funding. One Premier League investor is quoted in the report describing buying into a top-flight club as “high-risk gambling.”

The scale of the financial divergence within the pyramid is stark. Average club revenue has risen by 2,100 percent since the Premier League’s formation in 1992, while wages in the top flight have increased 50-fold, now ranging from £88 million to £364 million per club per season. Yet that wealth has not insulated the broader football ecosystem — the report flags the “substantial risk” posed by relegation from the Premier League, with clubs facing a revenue drop of up to 70 percent on the way down.

Bury, Wigan Athletic and Derby County are cited as case studies of clubs that have suffered severe financial difficulties, with the regulator warning that dozens more clubs are on the brink of similar crises.

“A significant number of clubs told us they would not survive if their owners walked away,” Kogan added. “This lack of resilience can no longer be ignored. Anyone reading this report can be in no doubt about the need for intervention.”

The IFR has outlined a six-point plan in response. It calls for revenue distribution to be reformed with a focus on financial stability rather than encouraging imprudent spending, and for leagues, clubs and other stakeholders to take active steps to reduce financial losses. The plan also demands improved financial risk management at club level, stronger governance at National League level, greater accountability to supporters, and progress on boardroom diversity.

The report also sets out the full details of a financial agreement between the Premier League and the EFL — approved by all 20 top-flight clubs — which includes a scaling back of parachute payments. The precise terms of that deal are expected to shape the next phase of the regulator’s work as it moves from diagnosis toward enforcement.