Majority of Clubs on Edge of ‘financial disaster’ Says Independent Regulator

Regulator Unveils Alarming State of the Game Findings

In a stark assessment of English football’s financial stability, David Kogan, the chair of the Independent Football Regulator, has warned that 60% of clubs competing in the English Football League (EFL) and the National League are technically insolvent. Kogan shared the troubling figures during an interview with BBC Sport sports editor Dan Roan, highlighting data drawn directly from the governing body’s newly published State of the Game report.

The findings indicate that a substantial majority of professional and semi-professional teams outside the top tier are operating under extreme economic distress. Technical insolvency—a condition in which a club’s total financial liabilities exceed its realizable assets—suggests that dozens of clubs across the Championship, League One, League Two, and the fifth-tier National League are surviving primarily on owner subsidies, external borrowing, or precarious short-term cash flows rather than self-sustaining commercial models.

Majority of Lower-League Clubs Face Mounting Financial Vulnerability

The disclosures arrive amid heightened scrutiny over the financial distribution mechanisms that connect the lucrative Premier League with the broader football pyramid. According to the regulator’s evaluation, a majority of clubs sit on the brink of financial collapse, relying heavily on continuous owner interventions to keep operational accounts afloat and service ongoing debts.

The State of the Game report aims to provide an unvarnished audit of club balance sheets following years of escalating player wages, high operational expenditures, and widening revenue gaps between tiers. Kogan’s disclosure reinforces long-standing concerns voiced by supporters, club administrators, and industry economists regarding the fragility of legacy institutions that anchor local communities across England.

Why This Matters

The confirmation of widespread technical insolvency across 60% of EFL and National League clubs provides critical justification for the formal establishment and operational remit of the Independent Football Regulator. As governance legislation progresses through the UK Parliament, empirical evidence detailing systemic fragility is expected to shape impending policies regarding financial licensing, cost controls, and the redistribution of broadcast revenues.

Without structural intervention or revised financial models, clubs facing insolvency remain persistently vulnerable to sudden ownership withdrawals, administration, and severe sporting sanctions. The findings establish a baseline of accountability, signaling that the incoming regulatory framework will prioritize financial sustainability and risk mitigation across the entire football ecosystem.

Frequently Asked Questions

What did David Kogan reveal about EFL and National League clubs?

David Kogan, chair of the Independent Football Regulator, stated that 60% of clubs in the EFL and the National League are technically insolvent, based on data compiled in the regulator’s State of the Game report.

What does technical insolvency mean in football?

Technical insolvency occurs when an organization’s overall liabilities exceed the value of its assets. In football, this typically means a club relies on external loans, shareholder bailouts, or ongoing cash injections from wealthy owners to meet daily operating costs and prevent formal insolvency or administration.

What is the State of the Game report?

The State of the Game report is an analytical review conducted by the Independent Football Regulator to assess the economic viability, financial sustainability, and systemic risks present throughout English football’s competitive leagues.