“On the edge of the financial abyss” – These figures prove the disaster in English football

Amid the unprecedented Manchester City financial scandal, the Independent Football Regulatory Authority (IFR) has published alarming figures for English football in a report. Despite record revenues of around nine billion pounds (around 10.6 billion euros), many clubs would be on the brink of financial ruin.

Accordingly, 94 percent of the 116 clubs in the five highest divisions made losses last season. More than a quarter of all clubs (32) would not be able to survive for more than 30 days if their owners stopped providing financial support. This emerges from the published draft of the “State of the Game” report.

More than 60 percent of clubs from the English Football League (EFL) and the National League are considered technically insolvent. 17 clubs would make losses even without paying any player salaries. The majority of clubs are not financially viable, it said, including 20 percent from the Premier League.

“While some of our clubs are among the richest and most competitive in the world, others are on the brink of financial ruin,” said IFR chairman David Kogan. Although revenues have risen sharply, costs have increased even more. This increased debts and losses and increased dependence on the owners. “Anyone reading this report can have no doubt that intervention is necessary,” Kogan said.

Debts and losses increased significantly

While the clubs' total income was a record, according to the report, debts rose from around 2.8 billion pounds (around 3.3 billion euros) in the 2020/21 season to 4.1 billion pounds (around 4.8 billion euros) in the past 2025/26 season. 5.1 billion pounds (around six billion euros) are expected for the coming season. Around three quarters of the debt is attributable to Premier League clubs.

The average losses of Premier League clubs increased from 20 to 44 million pounds per year (around 52 million euros) over the past five seasons.

According to the report, the financial gap between the clubs is also increasing. An average Premier League club now earns more than eight times as much as an average second division team. The authority therefore suggests changing the distribution mechanisms.

Manchester City was found guilty of 114 of 115 charges by an independent commission for breaching the Premier League's financial rules. The ten-time English champion faces severe penalties, including the revocation of several championship titles or forced relegation. City rejects the allegations and has lodged an appeal against the verdict.