94% of English clubs are losing money

The Football Association (FA), the body that regulates football in England, has warned of escalating financial risks facing clubs after a report released Tuesday revealed that 94 percent of clubs in the top five divisions are operating at a loss. The FA, established last year, proposed a package of six measures to bolster the game's financial stability, including stricter spending limits and requiring clubs to develop contingency plans to address financial crises. A draft of the "State of the Game" report, which will be subject to public consultation for eight weeks before its final version is adopted, indicated that nearly two-thirds of English Football League (EFL) and National League (NFL) clubs are insolvent. The report highlighted the growing reliance of clubs on owner funding to ensure their survival, warning that rising debt and over-reliance on this support threaten the future of clubs and the interests of their fans. The FA stressed the need to improve financial risk management and develop alternative plans to ensure clubs can continue operating should owner support decline or cease. David Coogan, the FA's chairman, said the financial disparity between English clubs is widening, explaining that some teams have substantial resources while others face the risk of collapse. He added that a number of clubs admitted they would be unable to continue operating if their owners withdrew their financial support. The Premier League, for its part, expressed its support for the report's findings regarding a revenue-sharing solution led by the football system itself, emphasizing that any additional funding should be accompanied by effective financial controls and reforms that enhance club stability. Negotiations are ongoing between the Premier League and the English Football League (EFL), which oversees the three divisions below it, to reach a new revenue-sharing agreement. According to media reports, Premier League clubs have offered to contribute £1.8 billion over ten years, in addition to existing funding, while the EFL has requested £1 billion over five years. The Premier League confirmed that its proposal, which was unanimously approved by its clubs last July, aligns with the objectives set by the regulatory body, stressing its commitment to a long-term partnership that balances the interests of the various clubs.