Published on 13 October 2026, the IFR’s landmark 245-page draft State of the Game report presents one of the most comprehensive assessments of English football’s financial health, highlighting growing debt, unsustainable spending, inequalities between leagues and an increasing dependence on wealthy owners.

The findings raise fundamental questions about how football is governed, how its considerable wealth is distributed and whether the current model can deliver long-term sustainability.

A game living on the financial brink

The report reveals a remarkable contradiction. English football has experienced extraordinary commercial growth, with average club revenues across the top four divisions increasing by 2,100% between 1992 and 2025. Yet financial resilience has failed to keep pace.

Among the report’s most concerning findings, more than 60% of EFL and National League clubs are technically insolvent, with liabilities exceeding their assets. Around two-thirds would struggle to survive beyond 90 days without additional owner funding, while more than a quarter could not survive a month.

Seventeen EFL and National League clubs have operating costs exceeding revenues before player wages are even considered.

David Kogan, Chair of the IFR, highlighted the fundamental contradiction:

“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.”

Kogan warned that the lack of financial resilience could no longer be ignored, emphasising the need for regulatory intervention.

The widening financial divide

The report identifies growing inequalities throughout the football pyramid, with the average Premier League club now generating more than eight times the revenue of its Championship counterpart.

The existing parachute payment system, designed to protect clubs relegated from the Premier League, has also created significant competitive distortions.

Research from the Leonard Curtis Football Finance Report found that clubs receiving parachute payments generated 2.8 times the average annual revenue of other Championship clubs between 2015/16 and 2024/25.

Professor Rob Wilson, Provost at UCFB and co-author of the Leonard Curtis report, argued that the system encourages unsustainable spending.

“These are not isolated examples of poor financial management. They point towards a structural problem in which the financial rewards associated with Premier League promotion encourage clubs to spend beyond their sustainable means.”

Wilson suggested that parachute payments should operate as a financial safety net rather than a competitive advantage.

Rising costs threaten long-term stability

The IFR highlights escalating player wages as a central driver of financial instability.

Between 2021/22 and 2025/26, average player wage costs increased by 33% in the Premier League, 32% in the Championship, 71% in League One and 63% in League Two.

In the Championship, average annual losses reached £22 million in 2025/26, equivalent to approximately 59% of revenues.

The IFR has responded with a six-point plan addressing financial risk management, cash reserves, contingency planning, revenue distribution, governance and supporter engagement.

However, greater redistribution alone may not resolve the problem.

Professor Wilson warned:

“Simply transferring more money down the leagues, without addressing how clubs spend it, risks fuelling further wage inflation rather than improving sustainability.”

Governance, responsibility and the future of football

The creation of the IFR under the Football Governance Act 2025 represents a significant change in English football governance.

Its challenge will be balancing financial discipline with investment, competition and the protection of clubs as important community institutions.

Alex Cadwallader, Director at Leonard Curtis, cautioned that regulation itself is not a complete solution, warning of increased compliance costs and unintended consequences.

Meanwhile, Leonard Curtis CEO Dan Booth emphasised the importance of protecting football’s heritage:

“We all want the game we love to be enjoyed now and in many years to come but like anything you want to last you have to take care of and protect it with everything you have got.”

English football and the GSS SPI Index

English football is strongly represented in the Global Sustainable Sport SPI Index, which evaluates organisations across the Seven Sustainable Pillars of Sport: Partnerships, Participation, People, Planet, Power, Profile and Prosperity.

The Premier League ranks in the Global Top 10, while the English Football League (EFL) sits within the Global Top 25. A further 22 English clubs, spanning the Premier League, Championship, League One, League Two and National League, feature on the GSS Purpose Podiums.

These assessments recognise broader sustainability, purpose and impact, extending beyond financial performance to governance, community engagement, environmental responsibility and organisational transparency.

However, the IFR findings underline why financial sustainability must remain central to any meaningful assessment of sport’s long-term impact.

Commercial success alone cannot guarantee sustainability. A club’s value extends far beyond its balance sheet, encompassing its supporters, communities, history and contribution to society.

The IFR consultation remains open until 8 December 2026, with its final report expected in early 2027.

For English football, the challenge is no longer simply generating greater revenues. It is ensuring that the wealth, governance and financial structures underpinning the game protect its future.

A sustainable football pyramid must be financially resilient, socially responsible and capable of delivering lasting value for the communities it serves.