The IFR’s first State of the Game draft paints a stark picture of debt, owner dependence and fragile club finances across English football.
The Independent Football Regulator (IFR) has released a draft titled State of the Game exposing a systemic financial imbalance in English football. While the sport generates more than £9 billion in revenue, the regulator’s analysis reveals that 94 percent of clubs are operating at a loss.
The findings span the Premier League, the English Football League (EFL) and the National League, indicating a pyramid where profit is the exception rather than the rule. The report warns that, without urgent reform, the majority of clubs could tumble into collapse, leaving supporters, communities and the sport itself in jeopardy.
Key findings of the IFR draft report
According to the IFR, nearly two-thirds of EFL and National League clubs are technically insolvent – their liabilities exceed the book value of their assets. Moreover, more than a quarter of all clubs would be unable to survive for even 30 days if the cash injected by owners were withdrawn.
The regulator also notes that 17 clubs in the lower tiers are already spending more than they earn, even before accounting for player wages. These numbers illustrate a dangerous cocktail of rising debt and short-term spending that threatens the long-term security of the football pyramid.
Why the financial cliff is widening
The Premier League’s massive broadcasting and commercial deals have created an enormous revenue gap between the top flight and the Championship. The draft shows the average Premier League club now earns more than eight times the average Championship side. Parachute payments intended to soften the impact of relegation have instead incentivised ambitious Championship teams to overspend on wages and transfer fees, hoping for a swift return to the elite tier. This dynamic fuels a wage inflation spiral, pushing clubs into ever-greater financial risk to chase the dream of promotion.
Risks for lower-league clubs and owner dependence
Beyond the glamour of the top tier, clubs in the EFL and National League face mounting operating costs that outstrip income. The IFR identified 17 clubs whose expenses exceed revenue even if player salaries were excluded, highlighting structural inefficiencies in stadium maintenance, staffing and community obligations. With more than 60 percent of these clubs technically insolvent, the report stresses that most lack a robust contingency plan. In practice, many rely on the goodwill of wealthy owners, a model the regulator calls unsustainable and vulnerable to sudden withdrawal of support.
IFR’s six-point plan for a more resilient pyramid
In response to the alarming data, the IFR proposes a six-point agenda aimed at stabilising club finances. The plan calls for clubs to hold larger cash reserves, develop clear contingency strategies, and restructure revenue distribution to reduce the steep financial cliffs between leagues. It also urges clubs to address the rising trend of losses, to embed fan consultation in decision-making, and to promote diversity and stronger governance within boardrooms. By tightening fiscal discipline and sharing wealth more evenly, the regulator hopes to safeguard the sport for supporters and local communities.
While the draft remains open for consultation until December, the IFR intends to publish a final version in early 2027. Stakeholders across the football ecosystem – from owners and administrators to supporters’ groups – are now faced with a clear mandate: reshape the financial architecture before the crisis deepens. The report serves as a wake-up call, urging collective action to preserve the integrity and accessibility of English football for generations to come.
