Majority of clubs on edge of 'financial disaster' - regulator

The annual cost to English clubs of the Independent Football Regulator (IFR) has risen to £20.3m, around double the amount initially estimated.

The watchdog has proposed a levy to fund operating costs of £18.3m to support 100 staff, with a further £1m to cover potential litigation.

Another £1m is towards a total estimated set-up cost of £45m, to be paid off over the next 10 years.

From next season, all regulated clubs in the top five divisions of English men's football will be required to pay for the IFR's operations.

The IFR claims it will be "a proportionate and affordable amount", however it is significantly higher than the figure forecast in a 2019 impact assessment report, before legislation was finalised.

That estimated annual operating costs between £8-10.2m, for the first 10 years.

"I am aware of the £10m figure and to be clear that is not a number we believe reflects either the current financial reality or the task ahead of us," said IFR chief executive Richard Monks.

"The levy we are proposing today represents a fair and balanced approach and will ensure that most clubs pay around 0.1% of their annual revenues.

"We are confident football will see this is a relatively modest investment to help achieve a more sustainable ecosystem which will provide peace of mind for fans, clubs and the communities they serve."

Majority of clubs on edge of 'financial disaster' - regulator

Under the proposed approach, the IFR says it "seeks to ensure the greatest contributions come from those most able to afford it", with those participating in Uefa and Fifa competitions, as well as clubs in receipt of Premier League parachute payments paying more.

It estimates that the highest-earning Premier League clubs would be charged up to £1.8m per season, with most paying £600,000. Championship clubs not in receipt of parachute payments would pay around £45,000 per season, with League One clubs paying around £9,000, and League Two clubs £6,000. National League clubs will pay less than £600 per season.

The IFR says the proposed levy of £20.3m is "significantly lower than other UK regulators and the reported administrative expenses of other football bodies such as the Premier League (more than £200m in 2024/25), and the EFL (£35m)". That comparison has raised eyebrows among some at the Premier League however, given the revenue it generates.

Last week the IFR published its State of the Game report, revealing that 94% of clubs are loss-making, and more than 60% of EFL and National League clubs are technically insolvent.

Since being established last year, it says it has also carried out suitability checks on 40 owners, directors and senior executives, and been involved in negotiations between the Premier League and EFL over a new financial settlement.