IFR warns 94% of English clubs are on the brink of bankruptcy

While the Premier League celebrates revenue records, the IFR shows that 94 % of the 116 clubs in the five top English tiers recorded losses in the 2025/26 season, leaving the country's football on the brink of bankruptcy.

Debt and lack of liquidity

Around two thirds of the clubs said they could not survive more than 90 days without fresh injections from their owners, and more than a quarter would not last even a month. Moreover, 60 % of the teams in the EFL and the National League have more debts than assets, making them technically insolvent.

Economic gap between divisions

The report highlights that the Premier League club with the highest revenue earns 605 times more than the lowest‑earning club in the National League. The average revenue of the Premier League has multiplied by 30 since 1992.

Impact of parachute payments

The IFR notes that the system of parachute payments encourages overspending in the Championship. Total sector losses rose to £1.7 billion, even though combined revenues are around £9 billion.

David Kogan, chairman of the IFR, warned that “seventeen clubs in the EFL and the National League already operate in such a way that, even if their players played for free, they would still go bust.” He added that this is the time to tackle the problems before money starts to run out.

Recent cases such as Sheffield Wednesday, Derby County and Wigan Athletic, which were on the brink of collapse, illustrate the risk the IFR wants to mitigate.

The body, created by the 2025 football governance act, is now negotiating with the Premier League and the EFL a new revenue‑sharing arrangement to try to curb the financial crisis threatening the sport.