Regulator's report: 94% of English top-five-division clubs lost money, warns of financial 'disaster'

Centre · 2The Independent Football Regulator (IFR) published a 'State of the Game' report on 13 October 2026 saying English football's finances are "dangerously exposed, with the majority of clubs living on the edge of financial disaster". 1 2 Centre · 2It found that 94% of clubs in the top five divisions made losses in 2025-26, even though English football generated about £9bn in revenue last season. 1 2 Centre · 1Seventeen clubs across the EFL and National League would be loss-making even if their players played for free, and the BBC reports that more than 60% of EFL and National League clubs have liabilities exceeding the book value of their assets. 1

Centre · 1On cash, the BBC lists 66% of clubs as unable to survive more than 90 days without new owner funding and 29% as unable to survive more than 30 days; Kogan put the latter group at 32 clubs. The BBC also reports that 60% of clubs have no business plan. 1 Centre · 2Debt is also a concern: the Standard says the report forecasts total English football debt will pass £5bn by the end of this season, while the BBC reports transfer financing rose from £55m in 2020-21 to £779m in 2024-25, with about £1.2bn of future transfer income already monetised. 2 1 Centre · 2Net transfer debt is given as about £3.3bn by the BBC (£4.8bn payables against £1.5bn receivables) and about £3.4bn by the Evening Standard. 1 2

Centre · 2The report highlights widening gaps between leagues: the average Premier League club earned 8.7 times the average Championship club in 2024-25, against 2.7 times in 1992-93, and the BBC adds that the six biggest top-flight clubs now earn on average £421m more than the rest. 2 1 Centre · 1The report calls parachute payments "distortive" and says they encourage Championship overspending, but also notes that clubs relegated in 2024-25 saw an average £70m drop in revenue. 2 Centre · 1Wages are another pressure point: 20 clubs, mainly in the Championship, League One and National League, spent more than 80% of revenue on player wages, and 17 of 18 surveyed EFL owners favoured stronger cost controls. 1

Centre · 2Kogan said the sector should "fix the house while the sun is still shining" and act before broadcast revenues, which are predicted to plateau or decline in the next cycle, fall. He said the report's findings were more dramatic than anyone expected. 1 2 Centre · 2The Premier League and EFL have not yet agreed a new funding deal, but Kogan, who has observed their talks, said one is close and could address some of the issues; it would include merit-based solidarity payments and reduce the gap between relegated clubs and others. The BBC notes the IFR has the power to impose a deal and "will not hesitate to use all the powers at our disposal" if football cannot find a solution. 1 2 Centre · 2Many clubs would not currently meet the Football Governance Act requirement to hold 'appropriate financial resources', which applies from May 2030; clubs will have to commit to action plans on this through licensing. IFR chief executive Richard Monks also said the regulator is alert to "creative compliance" with financial rules, citing Chelsea selling hotels to companies linked to their ownership. 1 2

Centre · 1The BBC reports that the Premier League, the EFL, the Football Association and the Football Supporters' Association all issued statements welcoming the findings. 1