Majority of clubs on edge of 'financial disaster' - regulator

What the report says

English football’s independent regulator has warned that the game’s finances are under severe strain, saying most clubs are living close to a financial crisis. In its new “State of the Game” report, the Football Regulator says the majority of clubs in England’s top five divisions are loss-making, with particularly acute pressure in the EFL and National League. The report says clubs are increasingly dependent on owner support, carry rising debt and often lack sufficient cash to cope if that support stops.

According to the findings highlighted by BBC Sport, the gap between the Premier League and the rest of the pyramid has widened further, while the use of transfer financing and parachute payments has added to instability lower down the leagues. The regulator says many clubs have little or no contingency planning and that some would struggle quickly without fresh funding. It also points to heavy wage bills, growing losses in the lower divisions and signs that financial stress could spread through clubs, owners and lenders.

David Kogan, chair of the regulator, told BBC Sport the report is intended as a warning and a chance to act before conditions worsen. He said reform is needed in areas including cost control, governance and revenue sharing. The Premier League, EFL, FA and Football Supporters’ Association all welcomed the report’s findings, while ongoing talks continue over a new funding settlement between the top flight and the rest of the English game.