IFR launches: regulator warns of English football's financial crisis

In the heart of a conference room in London, the chairman of the Regulator, David Kogan, presented the first report on the state of the game, painting a picture of an imminent crisis for English football. The 245‑page document highlights that almost two‑thirds of clubs in the Championship, League One, League Two and the National League are in a technical insolvency situation, with liabilities exceeding available assets.

Revenue and Cost Disparities

The report reconstructs the financial evolution since 1992, the year the Premier League was founded: over thirty years, average club revenues have grown by 2,100 percent, while top‑division salaries have risen by roughly fifty‑fold. Despite the massive growth, 94 percent of the top 116 entities across the Premier League, EFL and National League record economic losses, with annual wage costs ranging from £88 million to £364 million.

Bankruptcy Risk for Lower‑Level Clubs

According to Kogan, “Some clubs are among the richest and most competitive in the world, others are on the brink of financial disaster.” More than a quarter of professional and semi‑professional teams would not survive more than 30 days without the financial backing of their owners. The estimated revenue loss from relegation from the Premier League is roughly 70 percent.

Reliance on Private Investors

The document underscores clubs’ reliance on ongoing private capital injections, citing emblematic cases such as Bury, Wigan and Derby County, which have faced severe financial difficulties in recent years. Kogan warns that the risk is not confined to the past: “Football has always been risky, but today bankruptcy is much heavier because the numbers have grown enormously.”

The New Regulator’s Proposals

The IFR has identified six main areas for intervention: reforming revenue distribution between the Premier League and the EFL, reducing clubs’ economic losses, strengthening governance at all levels, improving financial risk management, ensuring greater fan involvement and increasing transparency on boards of directors. The two organisations are negotiating an agreement that should take effect from the 2026/27 season, with an increase in solidarity payments, a distribution tied to sporting results, an infrastructure fund and stricter controls, especially in the Championship.

The report concludes that if the Premier and the EFL do not reach an agreement, the IFR could intervene directly, imposing corrective measures to save the English model from collapse.