The Independent Football Regulator's new State of the Game report reveals that 94% of clubs in the top five leagues are loss-making. Chair David Kogan warns the game must act before financial disaster strikes.
The Independent Football Regulator (IFR) has issued a stark warning that English football’s financial foundations are "dangerously exposed," with the majority of clubs operating on the brink of insolvency. In the launch of its landmark State of the Game report on Tuesday, the regulator detailed a system where 94% of clubs across the top five leagues made losses in the 2025-26 season, highlighting a sector that is increasingly reliant on external owner funding to survive.
David Kogan, the chair of the IFR, described the findings as a "wake-up call" for the sport. According to the report, 66% of clubs could not survive for more than 90 days without new owner funding, while 29% would collapse within 30 days if that support were withdrawn. Kogan noted that 17 clubs are trading in such a way that they would be insolvent even if their players worked for free, underscoring the severity of the non-playing cost burden.
The report identifies a "dangerous cocktail" of rising debt and over-reliance on owner top-ups as the primary drivers of this instability. It further highlights the widening financial gap between the Premier League and the rest of the pyramid, noting that the average Premier League club now earns more than eight times the average Championship side. The IFR argues that these "cliff-edges" require urgent reform to prevent the spread of financial stress across the game.
Amid these revelations, negotiations between the Premier League and the English Football League (EFL) regarding a new solidarity package have reached a critical juncture. Reports indicate the two bodies are now only £27 million apart from agreeing on a comprehensive deal, with the EFL seeking to raise annual solidarity payments to £207 million. The IFR has the statutory power to impose a settlement if the leagues fail to reach an agreement, though Kogan has expressed a preference for the parties to resolve the impasse themselves to avoid a lengthy legal process.
Kogan also addressed the regulator's role in maintaining the integrity of club ownership, stating that the IFR has the power to review whether owners are "fit and proper" to run clubs. He insisted that the regulator's independence is absolute and that he would resign if faced with any political pressure, particularly regarding ongoing cases involving Manchester City. The regulator urges clubs to implement robust contingency plans to mitigate the risks of owner withdrawal, emphasizing that the current moment is the last chance to "fix the house while the sun is still shining."