The Independent Football Regulator (IFR) has concluded that the finances of English football are dangerously exposed, with the majority of clubs living on the edge of financial disaster. Its 'State of the Game' report, published after an 18-month forensic examination of the sport, warns that urgent action is needed before it is too late.
The report's central finding is stark: 94 per cent of clubs across the top five divisions lost money last season. That figure lays bare a business model in which spending on wages and transfers routinely outstrips income, leaving even established professional clubs dependent on owner funding or borrowing to stay afloat.
The IFR was established to oversee the financial sustainability of the English game and to protect clubs for their communities. Its first major review suggests that the regulator believes the current trajectory is unsustainable and that the risks are systemic rather than confined to a handful of poorly run outfits.
According to the report, the majority of clubs are not merely unprofitable but financially fragile, operating without adequate reserves to absorb shocks such as relegation, a downturn in broadcast revenue or the loss of a wealthy backer. The phrase used by the regulator — living on the edge of financial disaster — reflects a concern that many would struggle to survive a significant disruption.
The findings will intensify the debate over how money is distributed through the football pyramid. The IFR has signalled that it wants a deal on redistribution between the leagues, a mechanism intended to channel more funding from the top flight to lower divisions and grassroots level. The report is likely to be used as evidence that the current settlement leaves too many clubs exposed.
The timing of the report also places it in the middle of a wider argument about governance and independence. David Kogan, the chair of the IFR, has said he has faced no political pressure and has insisted that his independence is absolute. He has stated he would resign if any political pressure were applied over how the regulator responds to Manchester City being found guilty of breaching Premier League financial rules over a nine-year period.
Kogan could remove City's Abu Dhabi United Group should the verdict of an independent commission be upheld at the end of an ongoing appeal process. Concern had been raised that the proximity of City's ownership to Abu Dhabi's rulers could trigger a political intervention by the UK government and an immediate test of the new regulator's powers.
For clubs outside the elite, the report's conclusions are a reminder that financial survival often depends on factors beyond their control. The IFR's warning that action must be taken before it is too late suggests that the regulator sees its role as not merely monitoring but intervening to prevent a wave of insolvencies.
The 'State of the Game' report is expected to shape the IFR's next steps, including any new financial rules or redistribution requirements. For now, its message is clear: English football's finances are dangerously exposed, and the majority of its clubs are living on the brink.