English football regulator finds 94% of clubs in top five divisions operating at a loss

London, United Kingdom. England’s Independent Football Regulator warned on Tuesday that football clubs faced dangerous financial exposure, with 94% across the country’s five highest divisions operating at a loss. Its draft report proposed a six-point programme aimed at strengthening the game’s financial sustainability.

Losses and dependence on owners

The IFR, which was created last year, said its draft State of the Game report found that almost two-thirds of clubs across the English Football League and National League were technically insolvent. Those clubs were becoming more reliant on funding supplied by their owners, the regulator said.

IFR Chair David Kogan said that although some clubs ranked among the wealthiest and most competitive globally, others faced imminent financial disaster. He added that a significant number had told the regulator they could not survive the departure of their owners.

The regulator recommended tighter controls on costs, better management of financial risks and contingency arrangements for any withdrawal of owners’ support. An eight-week consultation with the public will precede publication of the report’s final version.

Government and Premier League responses

Britain’s culture secretary, Lisa Nandy, said the findings presented a stark assessment of clubs’ finances. In a statement, she said supporters had spent years fearing that a single bad owner or a financially poor month could leave their club facing ruin.

Nandy said the report went beyond confirming those fears, describing it as an exceptionally stark exposure of the financial condition of English football clubs.

The Premier League said it supported the report’s preference for football itself to lead efforts to resolve revenue distribution. In its statement, the league said additional funding needed to be accompanied by effective financial safeguards and broader reforms that would strengthen clubs.