Football regulator warns clubs face collapse as Kogan vows to quit over political meddling
The Independent Football Regulator says 94% of clubs are loss-making and many rely on owners, while its chair, David Kogan, will resign if politicians interfere over Manchester City.
The Full Story
A plain summary built from the channels that reported this story.
The Independent Football Regulator has published its first state of the game report, warning that English football is dangerously exposed and that many clubs could collapse if their owners walk away.
The report sets out a stark contradiction. English football brings in about £9 billion a year from media and commercial rights, yet the regulator found 94% of clubs in the top five leagues made a loss last season. More than 60% of EFL and National League clubs are technically insolvent. Only seven of 116 professional clubs recorded a profit. Across the 160 clubs the regulator oversees, 94% are trading unprofitably.
Cash flow is perilous. The regulator found 32 clubs have less than 30 days cash cover. If an owner chooses not to put in money at the end of the month, those clubs go bust. It also found 29% of clubs could not survive more than 30 days, and 66% could not survive more than 90 days without new owner funding. English clubs owe about £4.8 billion in outstanding transfer payments.
Player wages are high, but the report says they are not the only problem. It found 17 lower league clubs would still make a loss even if their players played for free. The regulator said football has traded on optimism and a degree of blindness to structural problems, always assuming a solution would come round the corner.
David Kogan, chair of the regulator, said the game has to face those problems. Among the recommendations, the regulator wants the Premier League and EFL to conclude years of talks and agree a new funding settlement so the top flight shares more of its wealth. It also wants clubs to keep more cash on their balance sheets and to reduce the cliff edges between divisions. From November, clubs will start to need a licence from the regulator to operate.
The government called the report a wake-up call. It said the report blows the doors off and shows in stark detail how fragile the state of the game is. English football is one of the country's crown jewels, it said, and the game must get its own house in order.
The report comes as Manchester City appeal against findings that they broke Premier League financial rules. More than 100 alleged breaches over almost a decade could lead to a huge points deduction or expulsion if the verdicts are upheld. The regulator could force a sale or refuse a licence. Kogan said that if the verdicts are upheld, the regulator will use its statutory powers to look at owners, directors and senior executives. He declined to pre-empt the outcome. He said he does not regard his job as closing clubs down, but that ownership of a club could be a different matter if a club's existence is at risk.
Kogan also moved to defend the regulator's independence. He said he would resign if politicians interfere. His remarks follow criticism of Greater Manchester mayor Andy Burnham for saying he would be really concerned to lose Manchester City's Abu Dhabi owners. Burnham later denied downplaying the seriousness of the findings. His previous role as mayor of Greater Manchester has led to questions about his relationship with the club's ownership. Kogan said independence runs through everything the regulator does and no politician has tried to influence it. The Conservatives have labelled Kogan a Labour crony because he previously donated to the party and have questioned his capacity to adjudicate. Kogan said independence is non-negotiable.
The regulator wants action now to put clubs on a more stable financial footing, protected if owner funding dries up or there is less cash from television rights. For now, football waits for a funding deal and for the outcome of Manchester City's appeal.
On screen
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Key Claims
Claims reported during this story's coverage, grouped by how many channels reported each one. Select a dot to see the source excerpt.
| Claim |  |  |  |
|---|---|---|---|
| Reported by all 3 channels | |||
| A regulator found that 94% of clubs in the top five leagues made a loss last season. | Reported by ITV | ||
| More than a quarter of clubs are reported to be unable to survive 30 days without owner support. | Reported by BBC One | ||
| Reported by a few · 2 channels | |||
| A regulator found that more than 160% of EFL and National League clubs were technically insolvent. | Not reported by Sky News | ||
| The head of the watchdog said he would resign if politicians sought to influence its work. | Not reported by Sky News | ||
| Only on one channel | |||
| English clubs owed about £4.8 billion in outstanding transfer payments. | Not reported by BBC One | Not reported by ITV | |
| If the verdicts are upheld, the regulator would use statutory powers to examine owners, directors and senior executives. | Not reported by BBC One | Reported by ITV | Not reported by Sky News |
| Reports said that 17 lower-league clubs would still make a loss even if players played for free. | Not reported by ITV | Not reported by Sky News | |
| Reports said that 66% of clubs could not survive more than 90 days without new owner funding. | Not reported by BBC One | Not reported by ITV | |
| The regulator could force a sale if Manchester City's guilty verdicts are upheld. | Reported by BBC One | Not reported by ITV | Not reported by Sky News |
| The regulator is pushing for a new funding agreement between the Premier League and EFL. | Not reported by ITV | Not reported by Sky News | |
Channel Perspectives
What each channel focused on, with key quotes.
The bulletin led with the regulator's warning that clubs are on the edge of financial disaster, then moved to the political row over Manchester City. It gave significant airtime to the regulator's threat to resign over interference and to analysis of the pressure on the Prime Minister. The report's figures were mixed with the City case and the government response.
- “English football clubs are living on the edge of financial disaster according to a major new report by the Independent Football Regulator”
- “32 clubs are now operating and only 30 days cash If the owner chooses not to pay cash at the end of the month those clubs go bust”
- “Independence absolutely runs through everything we're doing and no politician has tried to influence and would try to influence anything we do on that”
ITV put the regulator's independence at the centre of its coverage, leading on David Kogan's pledge to quit if there is political interference over Manchester City. It also pressed him on whether City would get a licence and set out the report's findings on losses and insolvency. The tone was direct and interview-led.
- “The head of the new independent football regulator has told ITV News he will quit if he comes under political interference over the future of Manchester City.”
- “Politicians love to meddle in football, all politicians, of all parties. Actually, the moment they start meddling in what we are able to do and the way we are able to operate, then we will take an extremely negative view of that and if need be, I will resign as a consequence of it.”
- “You would never run any business on that level of cash because basically anything could go wrong.”
This later BBC bulletin repeated the core findings but used the corrected figure that more than 60% of EFL and National League clubs are technically insolvent. It again paired the financial warning with the Manchester City independence story and included political analysis. It also highlighted that 17 lower league clubs would still lose money with free players.
- “The majority of football clubs in England are living on the edge of financial disaster and their finances are dangerously exposed.”
- “more than 60% of EFL and national league clubs are technically insolvent”
- “Independence absolutely runs through everything we're doing and no politician has tried to influence and would try to influence anything we do on that. And if they did try to? I would resign.”
This segment treated the report as a major shock and used a panel discussion to unpack the figures. It focused on the scale of losses, the reliance on wealthy owners and whether the regulator adds costs, with comments on player wages and ticket prices. It also noted Kogan's readiness to resign over government interference in the Manchester City case.
- “football's regulator revealed today that virtually every English football club is broke”
- “94% of clubs in the top five English leagues made losses last season”
- “he also was asked about the Man City case and if the government interfered, what would you do? Well said quite categorically, I would resign.”
This bulletin led on the regulator's warning and used a sit-down interview with David Kogan by Rob Harris. It gave the most detail on Manchester City's possible sanctions, the licensing regime starting in November and the risk that Sheikh Mansour could be declared unsuitable. It also focused on the £4.8 billion owed in transfer payments.
- “The chair of the Football Regulator says the English game is standing on the edge of financial disaster.”
- “From November, clubs will start to need a license from the Regulator to operate.”
- “I don't regard my job as somebody who's there to close down clubs, I regard my job as somebody who's there to help clubs continue but they have to do it on the basis that it's safe and secure and stable.”
Broadcast Timeline
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