Football Regulator to Recommend Cost Controls as 94% of Clubs Make 2026

The Independent Football Regulator (IFR) is set to recommend greater cost controls in its landmark State of the Game report, as a staggering 94% of top English clubs are making losses. The 250-page draft report, to be published on Tuesday, paints a damning picture of the financial state of English men's football, with the final version expected in the spring following an eight-week public consultation.

IFR Report Reveals Alarming Financial State of Football

The State of the Game report, produced by the IFR after almost 18 months of work, is the most detailed study ever of the football industry and its finances. It finds that 94% of the top 116 clubs are loss-making, highlighting an urgent need for cost controls and improved financial sustainability. The report will include a series of recommendations for the regulator and clubs to improve sustainability, with IFR chair David Kogan and chief executive Richard Monks providing more details at a press conference in Manchester on Tuesday.

The report stems from the Football Governance Act, which created the IFR. EFL clubs have been eagerly awaiting the report, hoping it will provide clarity on financial redistribution and cost control measures. The press conference is likely to be dominated by questions about whether the regulator could force the sale of Manchester City if mass guilty verdicts of an independent commission are upheld on appeal.

Key Recommendations and Implications

The IFR's recommendations are expected to focus on cost controls, potentially including salary caps or spending limits relative to revenue. The regulator has powers to assess the suitability of owners and executives "where there is clear evidence of wrongdoing by individuals." This could have significant implications for clubs with questionable ownership or financial practices.

Here is a comparison of the financial health of top English clubs:

Key Takeaways

• 94% of top 116 English clubs are loss-making, underscoring the need for urgent financial reform.
• The IFR will recommend cost controls to improve sustainability and prevent financial mismanagement.
• The report may lead to increased scrutiny of club ownership and executive conduct.
• EFL clubs are hopeful that the report will address financial redistribution and support lower-league sustainability.

What This Means for the Future of Football

The IFR's report is a watershed moment for English football. With the vast majority of clubs losing money, the current financial model is clearly unsustainable. The introduction of cost controls could help level the playing field and ensure that clubs operate within their means. However, it may also face resistance from powerful clubs and their owners.

The regulator's powers to assess the suitability of owners and executives could lead to significant changes in how clubs are run. If the IFR can force the sale of a club like Manchester City, it would send shockwaves through the football world. The report's final version, after public consultation, will be closely watched by all stakeholders.

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