94% of English clubs are losing money: regulator warns football must act 'before it is too late'

English football warned to fix its finances 'before it is too late'

English football generated a record £9 billion in revenue last season — yet 94 per cent of clubs across the top five divisions are loss-making, according to the Independent Football Regulator's (IFR) draft 'State of the Game' report. The regulator's blunt conclusion: the game must address its finances 'before it is too late'.

The findings lay bare how fragile the pyramid is beneath the Premier League's riches. The report reveals that 66 per cent of clubs admit they could not survive more than 90 days if owner funding stopped, while 29 per cent believe they could not last even 30 days. For many clubs, transfer fees and squad costs have risen faster than income, leaving some unable to meet instalments owed on deals without continued support from proprietors.

A regulator with teeth

The IFR was established in 2025 under the Football Governance Act, giving it statutory powers over financial regulation, club ownership, fan engagement and the protection of club heritage. By 2030, the Act will require clubs to hold 'Appropriate Financial Resources', and the regulator will demand every club commit to an action plan showing how it will meet that requirement.

However a rule is phrased, a regulator should look at that rule and think: 'What do we think a club would do in that situation with that rule?'— Richard Monks, IFR chief executive, on guarding against 'creative compliance'

Monks said the regulator's licensing team is alert to what the report calls 'creative compliance' with existing competition rules — pointing to devices such as Chelsea selling hotels to companies linked to their ownership in order to satisfy Premier League financial rules.

The wider money picture

The warning comes amid a period of unprecedented financial scrutiny in English football. Deloitte's Annual Review of Football Finance 2026 put Premier League revenue at £6.8 billion in 2024/25, while Spanish clubs generated €4.1 billion with wages consuming 60 per cent of revenue. Separately, Manchester City were found guilty by an independent commission of more than 100 breaches of Premier League financial rules over a nine-season period, with the club appealing against the judgement. Against that backdrop, the IFR is proposing changes to revenue distribution to narrow the financial gap between divisions, alongside stronger financial risk management, greater cash reserves and contingency plans for clubs facing the withdrawal of owner funding.

What happens next

• The IFR's draft 'State of the Game' report is open for consultation before final recommendations are published.
• Leagues, clubs and stakeholders are urged to take action to reduce losses across the pyramid.
• All clubs must produce action plans showing how they will meet the 'Appropriate Financial Resources' requirement by 2030.
• Governance at National League level is expected to be aligned with the regulated divisions above it.

For supporters, the message from the regulator is stark: record revenues have not bought financial resilience. The next chapter of English football governance will be written not on the pitch, but in the accounts.