Regulator finds 94% of English clubs loss-making as funding risks grow

English football's independent regulator has called for urgent financial reform after finding that 94% of clubs in the top five leagues made losses in 2025-26. According to BBC Sport's reporting on the regulator's State of the Game report, more than 60% of EFL and National League clubs had liabilities greater than the book value of their assets, leaving them technically insolvent.

Watch the highlights:

The findings show how heavily clubs depend on continued support from their owners. Some 66% said they could not survive beyond 90 days without fresh owner funding, while 29% could not last more than 30 days. The report also found that 68% had no contingency plan for an owner withdrawing support. Regulator chair David Kogan told BBC Sport that 32 clubs were operating with only 30 days of cash.

Costs beyond the playing squad are also contributing to the pressure. Seventeen clubs across the EFL and National League would still make losses even without paying their players, the report found. Meanwhile, 20 clubs, mainly in the Championship, League One and National League, spent more than 80% of revenue on player wages. Between 2021-22 and 2025-26, wage costs rose by 71% in League One and 63% in League Two.

The report also documented a widening divide between divisions. Average Premier League club revenue reached £341m in 2024-25, compared with £38.9m in the Championship, a ratio of 8.7 to one. That ratio had been 2.7 to one in 1992-93. The regulator said parachute payments create incentives for Championship clubs to overspend, while deferred transfer payments and financing arrangements increase the risk of financial difficulties spreading between clubs, owners and lenders.

A new funding agreement between the Premier League and EFL remains unresolved despite years of discussions. Kogan said a deal was close, but the regulator warned it could use its powers to impose a settlement if football failed to reach one. It also urged clubs to prepare stronger contingency plans and demonstrate how supporters' views influence decisions.

The Premier League, EFL, Football Association and Football Supporters' Association welcomed the findings, BBC Sport reported. The regulator said many clubs would not currently meet the Football Governance Act's financial-resource requirement. Clubs must satisfy that standard by May 2030.