According to the *Daily Mail*, an investigation by the Independent Football Regulator (IFR) has found that 94% of English football clubs are operating at a loss, while two-thirds of English Football League (EFL) and National League clubs are technically insolvent.

The IFR’s extensive *State of Football* report has called for “urgent reform”, warning that most clubs are “living on the edge of financial disaster”. In an effort to keep pace with rivals amid soaring player wages, clubs have developed a “dangerous combination of rising debt and excessive reliance on owner funding”, putting both clubs and their supporters at risk.

The financial divide between the Premier League and the rest of English football, described as a “financial cliff edge”, has widened significantly, with top-flight clubs generating average revenues more than eight times those of Championship sides.

The Premier League’s parachute payments for relegated clubs have also come under criticism. Critics argue that these payments, distributed over several years, encourage Championship clubs to overspend and take greater financial risks in pursuit of promotion. At lower levels, rising operating costs have left 17 EFL and National League clubs spending more than they earn. The IFR said the 245-page report should serve as “a wake-up call for English football” and announced a six-point plan to improve clubs’ financial sustainability.

The report found that English football generated more than £9 billion in revenue during the 2025-26 season, including £7.5 billion from the Premier League, £1 billion from the Championship, £460 million from League One and League Two combined, and £70 million from the National League.

When the Premier League was established in 1992, average revenues at top-flight clubs were 2.7 times those of Championship clubs. That ratio has now risen to 8.7 times. Between the 2021-22 and 2025-26 seasons, player wages surged by 33% in the Premier League and 32% in the Championship, while wages in League One and League Two rose by 71% and 63%, respectively. Agent fees also increased sharply during the 2025-26 season, climbing from £317 million to £584 million.

Football debt rose from £2.8 billion in the 2020-21 season to £4.1 billion in 2024-25, and is projected to reach £5.1 billion by the 2026-27 season. Premier League clubs account for approximately 75% of the total debt.

The EFL and Premier League are negotiating a 10-year funding agreement involving an additional £1.8 billion in distributions. The IFR has warned that it will intervene if the two sides fail to reach an agreement.

IFR chairman David Kogan said: “At the heart of English football’s success lies a huge contradiction. Some of our clubs are among the richest and most competitive in the world, while others are on the edge of financial disaster. Revenues are being overtaken by costs, driving up debt, losses and excessive reliance on owner funding. A significant number of clubs have told us that they would not survive if their owners withdrew their financial support.”

The EFL welcomed the report, saying it reflected concerns the organisation had consistently raised. The Premier League said it shared the IFR’s preference for a football-led solution to the issue of revenue distribution, while the Football Association said it would study the report carefully.

Kogan also addressed concerns over the regulator’s independence, stating that he would resign if there were any political interference and making clear that the regulator had been “completely free from any political pressure”.

Meanwhile, Manchester City have appealed after an independent commission found that the club had breached Premier League financial rules. It is understood that, if the ruling against City is upheld, the IFR would have the power to bar the club’s ownership group from involvement in English football.