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English football 'dangerously exposed' to financial risk, regulator finds
The regulator says 94% of clubs are loss-making and warns that debt, wage costs and transfer financing are pushing the game toward financial stress.
On Tuesday, the Independent Football Regulator published its draft "State of the Game" report, finding that 94 per cent of clubs in England's top five divisions lost money last season despite generating £9 billion in revenue.
The regulator warned of a "dangerous cocktail of rising debt and an over-reliance on owner funding," leaving clubs operating on financial "cliff edges" while pursuing an unsustainable spending model.
Data revealed 32 clubs operate on only 30 days' cash while 17 clubs would be loss-making even if players played for free, as reliance on "transfer financing" reached £779 million last season.
The IFR called for "urgent reform" to protect clubs' financial sustainability, while the Premier League and English Football League continue discussions on a new financial settlement despite ongoing negotiations.
By 2030, clubs must meet "Appropriate Financial Resources" requirements under IFR licensing rules, though CEO Richard Monks warned regulators must anticipate "creative compliance" as teams push financial boundaries.