Despite massive revenues, most English football clubs are struggling with financial crises.

The clinking of money, packed stadiums, and a touch of glamour—English football is synonymous with vast wealth. Yet, beneath this glitz, many of the country's traditional clubs are struggling with financial crises. If owners were to stop providing funds, nearly a third of the clubs would not survive even a month. This alarming picture has emerged from a report published by England's new independent football regulator (IFR).

The report, titled 'State of the Game', reveals that 94 percent of clubs across England's top five tiers incurred losses during the 2025-26 season. This occurred despite English football generating a total revenue of £9 billion last season—driven largely by the Premier League's immense global popularity. However, the report highlights the reality that, despite these massive revenues, the financial foundations of the clubs remain fragile.

Clubs Dependent on Owners' Funds

According to the report, almost all professional clubs in England rely on their owners' financial backing to survive. Nearly two-thirds of the clubs stated that they would not be able to last more than 90 days if their owners suddenly stopped funding them. For about a third of the clubs, the survival window would be a month or less.

The IFR assesses English football as a sport "rife with risk." Clubs in the Championship, League One, and League Two, in particular, are spending beyond their means in hopes of securing a share of the Premier League's massive revenue. This has led to mounting debt, financial strain, and uncertainty regarding the clubs' very existence.

Traditional Clubs Also Facing Financial Crisis

In recent years, several well-known English clubs have faced financial turmoil. Clubs such as Sheffield Wednesday, Derby County, Reading, and Wigan Athletic have all encountered various financial difficulties.

Bury Football Club was dissolved in 2019 after failing to manage its debt burden. The following year, Macclesfield Town met the same fate. These incidents have further heightened concerns regarding the fragility of English football's financial structure.

IFR Chairman David Kogan and Chief Executive Richard Monks wrote in the report, "There is no time left to waste in addressing the level of financial risk that has become entrenched in English football."

Call for a New Revenue-Sharing Agreement

The IFR plans to publish its final report in early 2027. In the meantime, the body has urged the Premier League and the English Football League (EFL) to reach a new agreement on revenue sharing, warning that it may exercise its powers if no settlement is reached.

The Premier League has proposed doubling the financial support provided to lower-league clubs over the next decade. While discussions are ongoing, a final agreement has yet to be reached.

Tom Greatrex, Chair of the Football Supporters' Association, has described the report as a "wake-up call" for English football.

Britain's Culture Secretary, Lisa Nandy, also highlighted the importance of the relationship between clubs and their supporters, stating, "These clubs belong to the fans. Without the fans, they would not exist."

The financial fragility of clubs stands in stark contrast to the massive revenue and global popularity of English football, presenting a major challenge. The IFR report warns that without changes to revenue distribution, cost controls, and ensured financial stability, more traditional clubs could face a crisis.