Thirty-Two English Football Clubs on Brink of Financial Collapse, Report Finds

A recent report from the independent financial regulator overseeing football has revealed that 32 clubs across England are dangerously close to financial collapse within the next three months.

The ‘State of the Game’ report serves as a stark warning about the fragile state of club finances in English football. It highlights how most clubs are currently operating at a loss despite the Premier League's global success and substantial revenue generation.

Financial Instability Widely Spread Across English Football

The report states that 94% of teams in England’s top five leagues recorded losses during the 2025/26 season. Although English football overall brought in £9 billion last season, nearly all clubs depend heavily on owner funding to stay afloat.

• Two-thirds of clubs would not last beyond 90 days without their owners' support.
• One-third could survive less than a month if that backing ceased abruptly.

This reliance paints a picture of a sport riddled with financial risk, where many teams, particularly those outside the Premier League, push themselves to overspend to climb divisions and aim for the financial rewards of the top tier.

Urgent Call for Reform from Football Regulator

David Kogan, chair of the regulator, alongside CEO Richard Monks, emphasized the need for immediate changes to address the growing financial dangers. They stressed that clubs are valuable community assets, and their potential collapse harms more than just the teams and fans—it impacts local economies and communities.

"The conclusion is clear: we can’t afford to waste any more time failing to address the levels of financial risk which have become embedded in English football," they wrote.

"When a club is taken to the brink of collapse as Sheffield Wednesday, Derby, and Wigan have been recently, it affects the entire community."

The report marks the beginning of a longer process aimed at making football clubs across the pyramid more financially sustainable.

Next Steps and Ongoing Negotiations

The regulator’s final report will be published in early 2027 after public consultations. Meanwhile, it renewed its appeal for the Premier League and the English Football League (EFL) to finalize a new financial agreement that would better distribute revenue.

Recently, the Premier League proposed doubling its solidarity payments to the EFL over ten years. However, talks are still ongoing, with both parties eager to reach an agreement soon.