IFR warns: 94% of English clubs in deficit threaten football pyramid

The independent football regulator (IFR) has published a 245‑page report showing that 94 % of the 164 clubs in the six top English divisions are recording losses, putting English football on the brink of a major financial crisis.

Alarming figures for the pyramid

The document indicates that more than 60 % of the clubs in the English Football League (EFL) and the National League are technically insolvent, their liabilities exceeding the book value of their assets. A quarter of the clubs would not survive more than thirty days without the support of their owners.

Colossal revenue gaps

According to the IFR, the Premier League generated more than £9 billion last season, roughly €10.7 billion, while an average Championship club produces only one‑eighth of that revenue. This disparity pushes clubs in the lower divisions to increase their spending to chase promotion.

Out‑of‑control spending

Twenty clubs spend more than 80 % of their revenue solely on wages, and six entities even exceed 100 % of their income. The average wage has risen by 33 % in the Premier League and by 71 % in League One over recent seasons.

Record transfer debts

The report forecasts that net transfer‑related debt will reach £3.4 billion, with future revenues already monetised at £1.2 billion.

Solutions proposed by the IFR

David Kogan, chair of the IFR, said he wants to introduce protection mechanisms, emergency plans and a more equitable redistribution of the revenue of the Premier League to the lower tiers. The aim is to improve clubs’ liquidity and prevent massive bankruptcies.

Calls to action

The report concludes that the “explosive cocktail of rising debt and excessive reliance on owner financing” requires urgent reform to preserve the stability of English football.