Full Breakdown
Independent Football Regulator’s “State of the Game” Report Warns of Systemic Financial Crisis in English Football
By Drooid · · How we work
Core Event
The Independent Football Regulator (IFR) released a draft “State of the Game” report that paints a stark picture of the financial health of English men’s football. The 250-page document, published this week, finds that 94 % of the 116 clubs across the Premier League, English Football League (EFL) and National League recorded a loss in the 2025/26 season. Only seven clubs avoided a deficit.
Background & Context
The IFR was created by the Football Governance Act and became law in 2023, marking the first statutory independent regulator for English football. Recent high-profile collapses—Bury (2019) and Macclesfield Town (2020)—and the distress of clubs such as Sheffield Wednesday, Derby County, Reading and Wigan have underscored the need for a comprehensive review. The draft report is the regulator’s first major assessment, with a final version slated for early 2027 after an eight-week public consultation.
Data & Statistics
- Losses: 109 of 116 clubs (94 %) posted a loss; 7 clubs broke even or profited.
- Insolvency: More than 60 % of EFL and National League clubs are technically insolvent, with liabilities exceeding assets.
- Owner reliance: 29 % could not survive more than 30 days without owner funding; 66 % would fold within 90 days.
- Debt growth: Total debt rose 46 % over the previous five seasons to roughly £4.1 billion and is projected to exceed £5 billion by season’s end. Premier League clubs account for about three-quarters of that debt.
- Transfer financing: Future-sale mortgages surged 1 316 % from £55 million in 2020/21 to £779 million in 2024/25. Clubs spent around £4.8 billion on transfers in 2025/26 while generating only £1.5 billion in player sales.
- Revenue disparity: The average Premier League club earned 8.7 times the revenue of the average Championship club in 2024/25, up from 2.7 times in 1992/93.
- Parachute payments: Relegated clubs saw an average revenue drop of £70 million in 2024/25; parachute payments of £48.7 million were provided, compared with £5.3 million solidarity payments to non-parachute Championship clubs.
Official Statements & Responses
- Richard Monks, IFR CEO: Emphasised the regulator’s statutory objective to make clubs and the pyramid more sustainable, and warned that the IFR will use its powers to impose a settlement if the Premier League and EFL fail to reach an agreement.
- The league pledged to study the report before the consultation and to work constructively toward a “football-led solution.”
- Football Supporters’ Association (Tom Greatrex, chair): Called the findings an “alarm call” and urged immediate, lasting change, highlighting that almost one-third of clubs could not survive a month without owner support.
- Culture Secretary Lisa Nandy: Said the report validates fans’ anxiety about club stability and underscores the importance of the independent regulator in safeguarding the game’s future.
What’s Next
The IFR will open an eight-week public consultation on the draft report, after which a final version is expected in early 2027. The regulator plans to introduce a licensing system that requires clubs to submit an action plan demonstrating how they will meet the “Appropriate Financial Resources” requirement by 2030. If the Premier League and EFL cannot agree on a new revenue settlement, the IFR has the authority to impose a binding settlement. An annual risk assessment is also slated for publication in spring 2028.
These steps aim to curb overspending, reduce reliance on owner injections and create a more resilient financial architecture for English football’s entire pyramid.