Regulator warns most clubs loss-making as over 60% in EFL and National League deemed insolvent
Independent Football Regulator research shows 94% of clubs are loss-making, with more than 60% of EFL and National League clubs technically insolvent.
Most professional football clubs are losing money and many outside the top flight are technically insolvent, according to research published by the Independent Football Regulator. The regulator's findings put 94% of clubs in the loss-making category and state that more than 60% of clubs in the EFL and the National League are technically insolvent.
The regulator has framed the situation as clubs sitting on the edge of what it called a financial disaster. The research covers clubs across the EFL and National League as well as the wider professional game, and identifies the prevalence of losses and insolvency as the central concern for the sport's economic health.
The warning comes as the Independent Football Regulator takes up its remit to oversee the financial sustainability of English football. Its initial evidence suggests that, for the large majority of clubs, revenue does not cover costs, while many lower-league clubs would not be able to meet their obligations without outside support.
Supporters have reacted to the findings with alarm, with some describing the numbers as evidence that the game's finances are already in crisis rather than merely heading toward one. Under the regulator's framework, financial monitoring and intervention are intended to prevent clubs from collapsing, though how that will affect individual teams remains to be seen.
No club-by-club breakdown or detailed methodology has been released with the summary findings. The regulator says the research forms part of its assessment of football's finances, and further work is expected as it develops its regulatory approach.
