English football generated a record £9 billion in revenue in the 2025/26 season, yet 94% of clubs across the top five divisions operated at a loss, according to the Independent Football Regulator (IFR).
The regulator’s draft State of the Game report, published on October 13, 2026, highlights the financial pressures facing English football, with rising wages, transfer spending and operating costs threatening clubs’ long-term stability.
Nearly two-thirds of English Football League (EFL) and National League clubs were technically insolvent, meaning their liabilities exceeded the book value of their assets. More than a quarter also said they could not survive beyond 30 days without financial support from their owners.
The findings expose the gap between English football’s record revenues and the financial health of clubs across the pyramid.
The gap with Europe’s top leagues
The Premier League generated £6.8 billion in revenue in 2024/25, according to Deloitte’s Annual Review of Football Finance 2026. The wider English football pyramid generated £9 billion in 2025/26, with the Premier League accounting for more than 80% of the total.
Deloitte’s figures for Europe’s other major leagues in 2024/25 were:
• Bundesliga, Germany: €4.3 billion
• La Liga, Spain: €4.1 billion
• Serie A, Italy: €3 billion
• Ligue 1, France: €2.2 billion
Despite the Premier League’s financial advantage, higher revenues have not shielded English clubs from mounting losses. Across Europe’s five major leagues, clubs recorded combined pre-tax losses of €1.5 billion in 2024/25, underlining the wider financial pressures facing the game.
Rising costs and the price of promotion
Player wages, transfer spending and other operating expenses continue to strain club finances.
The IFR found that average player wage costs rose across all five English divisions between 2021/22 and 2025/26. Annual transfer costs also more than doubled, from £1.3 billion to £2.6 billion.
The financial gap between divisions has widened, with the average Premier League club generating more than eight times the revenue of an average Championship side.
That disparity encourages Championship clubs to spend heavily in pursuit of promotion, which can unlock significantly higher broadcasting and commercial income. But clubs that fail to go up, or suffer relegation after reaching the Premier League, can be left with costs they can no longer sustain.
The problem extends beyond player wages. Seventeen EFL and National League clubs recorded non-player operating costs that exceeded their total revenue. Even without paying their players, those clubs would still have made losses.
Many clubs also depend heavily on wealthy owners to cover financial shortfalls. The IFR warned that withdrawing this support could leave clubs unable to meet their obligations, putting their stability and survival at risk.
Spain offers a different picture
La Liga generates less revenue than the Premier League, but Spanish clubs have improved their collective operating performance.
Deloitte reported that Spanish clubs generated €4.1 billion in revenue in 2024/25, with wage costs of €2.5 billion, equivalent to 60% of revenue. Their combined operating result was a profit of €300 million.
However, that strength is concentrated among the biggest clubs. Real Madrid and Barcelona accounted for approximately 52% of La Liga’s total revenue in 2024/25.
The comparison highlights an important distinction: generating more revenue does not automatically make a league financially healthier. Controlling costs and ensuring income keeps pace with expenditure are equally important.
What needs to change?
The IFR’s draft report proposes a six-point plan to improve financial sustainability across English football. The recommendations include stronger financial risk management, greater cash reserves and contingency plans for clubs facing the withdrawal of owner funding. The regulator also proposes changes to revenue distribution to narrow the financial gap between divisions, alongside measures to address mounting losses and improve club governance.
The Premier League has backed the report’s preference for a football-led solution to revenue distribution, while stressing that any new funding arrangements must be supported by effective financial controls. The draft report is now subject to an eight-week public consultation, with the final version expected in early 2027.
English football’s challenge is no longer simply to generate more money. It is to ensure that record revenues translate into financially sustainable clubs across all five divisions.
Story by: Christian Opoku McRich
