Football regulator finds 94% of clubs lost money as funding talks continue

English football's financial regulator has called for urgent reform after finding that 94% of clubs in the top five divisions made losses in 2025-26. BBC Sport reported that the Independent Football Regulator's State of the Game assessment identified rising debt and reliance on owners as significant threats to clubs' stability.

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The cash position was particularly fragile. According to the findings reported by the BBC, 66% of clubs could not last beyond 90 days without further owner funding, while 29% could not manage more than 30 days. More than 60% of EFL and National League clubs had liabilities greater than the book value of their assets.

The regulator urged clubs to prepare contingency arrangements for a withdrawal of owner support. Its findings also showed that 60% had no business plan. BBC Sport reported that the watchdog could impose a funding agreement if the Premier League and EFL failed to reach their own settlement after years of negotiations.

At Tuesday's report launch, regulator chair David Kogan argued that a redistribution agreement could deliver immediate change, according to the Guardian. He said reducing parachute payments to relegated clubs while increasing distributions more broadly could help address the financial distortions associated with those payments. Kogan presented a settlement as a way to ease pressure across the five divisions covered by the regulator.

The Premier League welcomed the report and maintained that its latest redistribution offer met the regulator's objectives, the Guardian reported. The newspaper understood the proposal to be worth £320m a season. That figure describes an offer, rather than an agreed settlement. The league said it remained committed to securing a long-term arrangement with the EFL that balanced the interests of clubs.

The EFL also welcomed the findings, saying they supported its position that English football generates enough revenue to sustain both the top division and the wider pyramid. According to the Guardian, it pledged to keep working with the Premier League and regulator towards a financial agreement. Kogan's proposed redistribution changes therefore remain dependent on a deal rather than measures already in operation.