The Financial Times reports the game's new regulator issued the warning about English football's finances.
The Financial Times reports that English football's new regulator has warned the game is on the ‘edge of financial disaster.’
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The Independent Football Regulator's first draft State of the Game report says English men's professional football generated more than £9 billion in revenue while 94% of clubs in the top five divisions operated at a loss. Published on Oct. 13, the report describes a game whose commercial success has not translated into financial resilience across the pyramid.
The regulator's findings show the strain is concentrated below the Premier League. Nearly two-thirds of English Football League and National League clubs were technically insolvent, meaning their liabilities exceeded the book value of their assets. More than a quarter could not survive longer than one month without owner funding.
The regulator found that the average Premier League club earns more than eight times the average Championship side. It said parachute payments to relegated clubs can encourage Championship teams to overspend and add to wage inflation as they chase promotion.
The pressure extends beyond player salaries. Seventeen EFL and National League clubs had operating costs above revenue even before player pay was counted, according to the report. IFR Chair David Kogan said a significant number of clubs told the regulator they would not survive if their owners walked away.
The regulator proposed a six-point plan calling for stronger financial-risk management, larger cash buffers and contingency plans for the loss of owner support. It also urged changes to revenue distribution, action on rising losses, and clearer evidence that clubs consider supporters' views and improve boardroom diversity and governance.
The Premier League said it supports a football-led approach to revenue distribution and that new funding should come with stronger financial controls, Reuters reported. Its negotiations with the EFL over a new sharing agreement remain unresolved.
The State of the Game report is a draft, not a final set of rules. Its public consultation runs through December, and the regulator says the final report is expected in early 2027.
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