Majority of English football clubs on the edge of financial disaster, report says

The Independent Football Regulator found that English football’s financial foundations are under intense strain. Ninety-four percent of clubs in the top five leagues made losses in 2025-26. More than 60% of EFL and National League clubs were technically insolvent. The regulator says this creates risks for clubs, supporters and the wider pyramid.

The danger comes from several connected pressures. Sixty-six percent of clubs could not survive more than 90 days without new owner funding. Twenty-nine percent could not last more than 30 days. Transfer financing has also surged, reaching £779m in 2024-25, while clubs reported about £3.3bn in net transfer debt in 2025-26.

The report calls for urgent reform. It urges stronger contingency plans, action on rising losses, better governance and more attention to fans’ views. The Premier League and EFL still have no new funding settlement, but the regulator can impose one if football does not find a solution.

The report identifies losses across the game and especially severe weakness below the Premier League. Overall, 94% of clubs in the top five English leagues made losses in 2025-26. Separately, more than 60% of EFL and National League clubs were technically insolvent. These figures show that financial problems are not limited to a few poorly managed teams.

Owner funding is often the short-term lifeline. The regulator found that 66% of clubs could not survive for more than 90 days without new money from their owners. Twenty-nine percent reported that they could not survive more than 30 days. David Kogan said 32 clubs were operating on only 30 days’ cash.

That leaves many clubs exposed to sudden decisions by owners. The report says 68% have no contingency plan if an owner walks away. The regulator wants clubs to prepare for withdrawn funding and warns that rising debt could spread financial stress throughout the pyramid.

A technically insolvent club is one whose financial position is unsustainable. In standard accounting terms, its liabilities may exceed its assets. In practical terms, it may also be unable to pay bills and debts when they are due. This does not necessarily mean the club closes immediately, but it signals that normal income and resources are not enough to support its obligations.

The article reports that more than 60% of EFL and National League clubs were technically insolvent. It also says 17 clubs would be loss-making even if their players played for free. Their non-playing costs alone would be enough to make them go bust, according to IFR chair David Kogan.

That combination makes the problem urgent. Clubs may continue operating through owner funding, borrowing or future transfer income, but those solutions can postpone rather than remove the weakness. The regulator is urging robust contingency plans before money dries up and financial pressure becomes unavoidable.

Regular owner funding can hide a club’s underlying financial weakness. If a team spends more than it earns, owner cash may cover wages, bills and other costs. But that support is a choice, not a guaranteed football income stream. If an owner changes priorities, faces financial trouble or simply stops paying, the club may quickly be unable to meet its obligations.

The figures show how little protection many clubs have. Sixty-six percent could not survive more than 90 days without new owner funding. Twenty-nine percent could not survive more than 30 days. David Kogan said 32 clubs were operating on only 30 days’ cash, meaning an owner’s decision at the end of a month could leave them in serious danger.

The risk is greater because 68% of clubs have no contingency plan for an owner’s departure. The regulator wants clubs to prepare alternatives, reduce exposure and strengthen sustainability before funding dries up.

Transfer financing is a way for a club to turn future transfer income into money immediately. Instead of waiting for instalments owed by another club, it uses those expected payments in a financing arrangement. This can provide liquidity, but it also means future income is already committed to lenders or finance providers.

The practice has grown sharply. Transfer financing stood at £55m in 2020-21 but reached £779m by 2024-25. About £1.2bn of future transfer income has now been monetised. At the same time, English clubs reported approximately £4.8bn in transfer payables and only £1.5bn in receivables in 2025-26, creating about £3.3bn of net transfer debt.

The regulator warns that deferred payments and transfer financing link clubs, owners and lenders. If one party struggles to pay, others may be affected. Borrowing can therefore solve a short-term cash problem while increasing longer-term financial stress across football.

Promotion and relegation create sharp changes in a club’s financial position. Reaching the Premier League can bring much greater income, while dropping into the Championship can leave a club trying to maintain expensive ambitions with fewer resources. That uncertainty encourages clubs to spend on players in pursuit of promotion or to avoid relegation.

Parachute payments give relegated Premier League clubs extra money in the Championship. The regulator says this system contributes to incentives for Championship clubs to overspend. Clubs may believe that heavy spending is necessary to compete with recently relegated teams or reach the Premier League. As clubs compete for players, wages can rise across the division.

The result is a larger financial cliff-edge between leagues. The average Premier League club earns more than eight times the average Championship side. The regulator links parachute payments to wage inflation and is calling for wider reform of football’s funding arrangements.

English football’s pyramid creates sharp financial differences between leagues. Promotion can bring access to much greater income, while relegation can remove it. The regulator says the average Premier League club earns more than eight times the average Championship side. Clubs therefore depend heavily on where they compete, even though that status can change each season.

Other income is uncertain too. Clubs may spend on players, expecting promotion, future transfer receipts or continued owner backing to cover the cost. Transfer financing turns future instalments into immediate cash, while 66% of clubs could not survive more than 90 days without new owner funding. Net transfer debt reached about £3.3bn in 2025-26.

These links make weakness contagious. A club can face lower league income, unpaid transfer obligations or withdrawn owner support at the same time. The regulator says financial cliff-edges have grown and wants stronger plans, governance and a new funding settlement.