Football Regulator Warns Clubs Face Financial Instability in England

The Independent Football Regulator published its State of the Game report after examining English football finances, finding that most clubs face severe financial risks because of losses, rising debt and dependence on owner funding, according to the regulator.

The report found 94% of clubs in the top five English leagues recorded losses in 2025-26, while more than 60% of EFL and National League clubs were technically insolvent because liabilities exceeded assets, according to the IFR.

The regulator also reported that 66% of clubs could not survive more than 90 days without new owner funding and 29% would last no longer than 30 days. The findings warned that financial gaps between leagues have expanded despite Premier League growth.

IFR chair David Kogan said the regulator identified serious cash-flow problems among clubs and warned that some teams have little protection if owners stop providing money.

"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," said David Kogan, IFR chair.

Kogan added that some clubs are operating with extremely limited financial reserves, increasing their exposure to sudden funding problems.

"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," said David Kogan, IFR chair.

The IFR report said transfer financing has grown sharply, with clubs increasingly using future transfer income to secure immediate cash. The amount reached £779m in 2024-25, compared with £55m in 2020-21.

"That is a very, very risky scenario. This is the moment of addressing these problems before money starts to dry up," said David Kogan, IFR chair.

The regulator recommended stronger financial controls, contingency plans for clubs, changes to revenue distribution and improved governance. It also said Premier League and EFL discussions on a new funding agreement should continue.

"We can actually fix the house while the sun is still shining and that's essentially what our role is going to be in this," said David Kogan, IFR chair.

The report noted that average Premier League club revenue is more than eight times that of an average Championship club, while wage costs increased across every division between 2021-22 and 2025-26.

"Nobody in football for 100 years has believed that football was trading in a solvent and effective state. It's not how football has ever really operated," said David Kogan, IFR chair.

The IFR was created through the Football Governance Act and has powers to intervene if leagues fail to reach agreements on reforms, including financial distribution arrangements.