Football regulator urges reform as 94% of English clubs report losses

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, rising debt and dependence on owners have left much of the football pyramid vulnerable to a funding shock.

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The research found that 66% of clubs could not survive beyond 90 days without fresh owner funding, while 29% said they could not last more than 30 days. Some 68% had no contingency plan for an owner's departure. More than 60% of EFL and National League clubs had liabilities greater than the book value of their assets.

The pressure extends beyond player salaries. The report identified 17 EFL and National League clubs whose other costs would still leave them making losses even if players received no wages. IFR chair David Kogan told BBC Sport that 32 clubs were operating with only 30 days of cash, highlighting the immediate dependence on continued financial support.

Transfer commitments present another risk. English clubs reported approximately £4.8bn in transfer payments owed in 2025-26, against £1.5bn due to come in, leaving net transfer debt of about £3.3bn. Around £1.2bn of future transfer income has already been converted into upfront funding through financing arrangements. The regulator warned that these connections between clubs, owners and lenders could allow financial problems to spread.

Revenue disparities have also widened. By 2024-25, the average Premier League club earned £341m, compared with £38.9m for the average Championship side, a ratio of 8.7 to one. The report said parachute payments contribute to incentives for Championship clubs to overspend, adding to upward pressure on player wages.

The Premier League and EFL have not agreed a new financial distribution settlement despite years of negotiations. Kogan said a deal was close, but the regulator warned it would consider using its powers if football failed to reach a solution. The IFR can impose an agreement and has also urged clubs to prepare stronger contingency plans.

The Premier League, EFL, Football Association and Football Supporters' Association all welcomed the report's findings. Alongside financial action, the regulator wants clubs to demonstrate how they consider supporters' views and improve boardroom diversity and governance. The report said many clubs would not currently satisfy the financial-resources standard they are required to meet by May 2030.