The majority of English football clubs are operating under extreme financial risk despite industry record revenues, according to a landmark new report from the Football Foundation Independent Football Regulator (IFR).
Following an 18-month investigation, the regulator’s first State of the Game report revealed that 94% of the 160 regulated clubs are currently trading unprofitably.
Despite generating combined revenues of more than £9bn, clubs across England are relying heavily on owner bailouts and mounting debt to keep up with wage inflation and rivals.
Key findings from the State of the Game report:
- 94% of clubs lose Unsustainable short-term spending continues to outpace organic growth across the pyramid.
- 32 clubs have less than a month of cash: More than a quarter of regulated clubs would face immediate collapse within 30 days if their owner withdraws financial support.
- Technical insolvency: More than 60% of clubs in the Premier League and National League have liabilities that exceed the book value of their assets.
- Operating costs exceed revenues: 17 clubs in the lower tiers will suffer a financial loss even if they pay nothing in player wages.
- Extreme “edges of the abyss”: The average Premier League club generates more than eight times the revenue of a typical top-flight team, with umbrella payments in the top tier continuing to drive excessive, high-risk gambles in the second tier.
“If the owner leaves, I go bankrupt.”
talking to Sky SportsDavid Coogan, president of FIFA, warned that English football could not rely on endless outside investment to cover up structural failure.
“We have 32 clubs that have had less than 30 days’ cash cover in their accounts. If the owner leaves or dies, they are insolvent and go bankrupt,” he said.
“Today there is enough money passing through the Premier League and the Premier League for the sun to shine. This is exactly the moment when we need to address the structural issues, because as soon as that sun stops shining, those clubs will be in real trouble.”
What will happen next?
The regulator has rolled out a six-point intervention plan ahead of the introduction of mandatory club licensing from November.
Under the new framework, clubs will be required to maintain at least 30 days of operating cash reserves, implement robust contingency plans for sudden exits of ownership, and adopt stricter provisions for long-term debt.
The IFR has also confirmed that although it is preferred Premier League and English as a foreign language To negotiate their revamped revenue distribution deal, it retains legal “backstop” powers to intervene and enforce the settlement if the two bodies fail to agree terms.
The Premier League said: “These preliminary results reinforce the EFL’s long-standing position that English football generates sufficient revenues to maintain a successful Premier League and a thriving pyramid.”
