Football "on the edge of disaster" as extent of growing financial crisis laid bare

English football is “standing on the edge of financial disaster,” according to the new Independent Football Regulator.

IFR chair David Kogan says there is a “massive contradiction” between the wealth of the Premier League and debt-ridden clubs in the rest of the pyramid.

The regulator’s State of the Game report - which is published today - reveals that nearly two thirds of EFL and National League clubs are technically insolvent where their liabilities are greater than their assets.

It also says that more than a quarter of clubs would not be able to survive for more than 30 days if owners pulled their funding.

IFR Chair David Kogan said: “At the heart of English football’s success is a massive contradiction. While some of our clubs are among the richest and most competitive in the world, others are standing on the edge of financial disaster.

“Skyrocketing revenues have been outpaced by costs which in turn have pushed up debt, loss-making and an over-reliance on owner funding.

“A significant number of clubs that told us they would not survive if their owners walked away. This lack of resilience can no longer be ignored. Anyone reading this report can be in no doubt about the need for intervention.

“Football has always been bloody risky but now if you fail the failure is much harder to take because the numbers are so much bigger and that’s where we come in.”

The 245 page report also reveals:

The IFR has set out a six-point plan while also revealing the full details of the “financial deal” between the Premier League and EFL which includes scaling back parachute payments.

The IFR six point plan is:

And the full details of the Premier League “deal” - which has been agreed by the 20 top flight clubs - would start from the 2026/27 season. It has yet to be rubber stamped by the EFL but is getting closer.

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The IFR has made it clear that the Premier League must reach agreement with the EFL - or it will step in to force the top flight to find more cash for the rest of the pyramid.

The “deal” includes:

Culture Secretary Lisa Nandy: “Football fans for years have lived with the anxiety of knowing their club could be one bad owner or poor month away from ruin.

“This report doesn’t just validate that anxiety, it has blown the doors off the game with the most stark uncovering of the state of football club finances in England today.

“It underlines that the fight to establish an Independent Football Regulator was vital to safeguarding the future of English football for its fans. The findings are undeniable: there is no Plan B.

"These clubs belong to their fans. They are nothing without their fans. We are on their side and we will always fight for them.

“I urge the football authorities and those running clubs to consider these findings for the good of the game, for the fans, and for the communities of which they are so often the bedrock of.”

The Football Supporters’ Association (FSA) chair Tom Greatrex said: “The State of the Game report clearly highlights the unsustainable, broken model of football’s finances.

“How is our national game, which generates billions in revenue every year, in such a perilous condition with so many clubs living hand-to-mouth and reliant on regular handouts from owners?

“Whether you are a football finance expert or a match going supporter who pays little attention to off-field issues, it is astonishing that almost one in three clubs could not survive for more than a month if an owner stopped funding them.

“This is an alarm call for English men’s professional football that must precipitate real and lasting change."

The Premier League said it “welcomed” the new report and pledged to carry on working with the EFL to find a solution.