English football clubs are “dangerously exposed” with the majority “living on the edge of financial disaster”.
That’s according to a new ‘State of the Game’ report delivered by the Independent Football Regulator.
A full assessment of English football’s finances is due next year but there is enough in the 244-page draft published on Tuesday to concentrate everyone’s attention on “a dangerous cocktail of rising debt and an over-reliance on owner funding, leaving clubs and their fans at risk”.
Here are eight of the most alarming figures and findings from the IFR…
**94% of the clubs in the Premier League, EFL and National League lost money last season**
That is 109 out of 116 teams in the top five divisions.
Only seven clubs, from the **[Premier League](https://www.football365.com/premier-league/table)** to the National League, did not record a loss.
**More than 60% of EFL and National League clubs are technically insolvent**
Nearly two-thirds of clubs from the Championship to the National League have liabilities that exceed their assets, meaning they rely on funding from their owner to survive.
**29% of clubs could not survive more than 30 days if their owner withdrew funding**
In addition, 66% of clubs from the Premier League to the National League could not survive for more than 90 days without new owner funding.
The report also states that the majority of EFL and National League clubs do not have a contingency plan if their owner is unable or unwilling to continue such funding.
**20 of the 116 clubs spent more than 80% of their revenues on player wages.**
The majority of those clubs are in the Championship, League One or the National League. And there are six clubs – two in League One – that spent more than 100% of their revenue on player wages.
**17 clubs in the EFL and National League would make a loss even if they did not pay their players**
Last season, 18% of clubs from the Championship to the National League had non-player operational costs that exceeded their revenues.
That means those clubs would still have made a loss even if their players played for free during 2025/26.
**Total debts across the 116 clubs increased by 46% in the last five seasons**
Debt across the 116 clubs stood at around £2.8billion in 2020-21. In 225.26, it rose to £4.1billion.
Next season, that figure is forecast to reach £5.1billion next season.
Premier League clubs account for three-quarters of that total debt.
**Transfer financing increased by 1316% in the five seasons to 2024/25**
Transfer financing involves clubs mortgaging or selling off future cash instalments due from player sales to third-party lenders, such as like private credit funds, in exchange for an immediate cash injection.
In 2020/21, transfer financing stood at £55million. By 2024/25 it had reached £779million.
That represents a 14-fold increase.
In 2025-26, the 116 clubs spent around £4.8billion on transfers but made only £1.5billion in player sales.
**The average Premier League club earns more than eight times the revenue of the average Championship club**
The incentive to achieve the Premier League riches is clear – total revenues increase 376% upon beint promoted to the top flight – but the IFR is concerned how clubs might overstretch themselves ‘chasing the dream’.
Parachute payments are necessary to stomach the loss of revenue incurred by relegation but clubs receiving year one parachute payments received £48.7million in 2025/26, while non-parachute Championship clubs received only £5.3million in solidarity payments from the Premier League.
On average, non-parachute Championship clubs spent 84% of their revenue on player wages compared to 57% for clubs in receipt of parachute payments.
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