Across England’s football pyramid, the money generated at the summit is rising while the financial footing beneath it is becoming increasingly unstable. A new assessment from the Independent Football Regulator paints a stark picture: 94 per cent of clubs are operating at a loss, with many outside the Premier League dependent on owner funding simply to remain in business.
The warning reaches from Championship cities to League One, League Two and the National League. Around one third of clubs in the EFL and National League are described as being in an insolvency situation, while the report says more than 60 per cent are technically insolvent.
Quick facts
- English football generated more than £9 billion in 2025-26.
- The Premier League accounted for £7.5 billion, compared with £1 billion in the Championship.
- League One and League Two brought in £460 million, while the National League generated £70 million.
- Total club debt rose from £2.8 billion in 2020-21 to £4.1 billion in 2024-25 and is projected to reach £5.1 billion this season.
- Premier League clubs hold 75 per cent of the total debt.
The regulator says the system needs urgent reform, warning that clubs are approaching “financial disaster”. The central pressure is the pursuit of sporting competitiveness, with teams repeatedly raising player wages in an effort to keep pace with rivals.
That has created what the investigation calls a dangerous mixture of escalating debt and excessive reliance on owner investment, putting both clubs and their supporters at risk. More than a quarter of EFL and National League sides would be unable to last beyond one month if their owners stopped supplying funds.
The divide between the Premier League and the rest has widened dramatically. The average top-flight club now earns roughly eight times as much as a Championship counterpart; in 1992, Premier League revenues were only 2.7 times higher. The current ratio is put at 8.7.
Parachute payments to relegated Premier League clubs are identified as another factor. Their presence pushes Championship rivals towards higher-risk spending as they attempt to compete with teams retaining significant top-flight income after relegation.
Wages are not the sole issue. Rising operating expenses mean 17 EFL and National League clubs would still make a loss even if they had no player salary bill at all.
Costs continue to climb
Salary spending has accelerated throughout the professional game. Between 2021-22 and 2025-26, wages rose by 33 per cent in the Premier League and 32 per cent in the Championship, but the increases were sharper further down: 71 per cent in League One and 63 per cent in League Two.
Average losses have also grown. Premier League losses rose from £20 million in 2021-22 to £44 million in 2025-26, while Championship losses increased from £13 million in 2024-25 to £22 million this season.
In League One, losses have tripled over five seasons, moving from £2.4 million to £7.5 million. League Two has seen an even steeper relative rise, from £600,000 to £2.7 million over the same period.
The figures underline a structural problem in a game whose global centre of gravity is increasingly concentrated in the Premier League. Record income is flowing through English football, but beyond the top division, many clubs are spending heavily to chase a place in that market while carrying a financial burden they may not be able to sustain.
