English football on the brink: 94% of clubs are losing money and a third face insolvency
A report from England's independent football regulator has set off alarm bells around the country. It shows that 94 percent of clubs are making losses and one third of those in the EFL and National League are insolvent. Rising wages and heavy reliance on owner funding have pushed many sides to the edge of financial disaster.
ByMatt
4 min read
English football is staring into a financial abyss. A report from the Independent Football Regulator has revealed that 94 percent of clubs in the country are making losses, while one third of those in the EFL and National League are insolvent. The figures paint a picture of an unsustainable model in which the obsession with staying competitive drives spending through the roof and wrecks balance sheets.
Key numbers behind the financial crisis in English football
- 94% of English clubs are running at a loss.
- One third of EFL and National League teams are technically insolvent.
- Player wages rose by up to 71% in League One over five seasons.
- Total debt across English football is approaching £5.1 billion.
- The Premier League accounts for 75% of all debt and earns eight times more than the Championship.
The study, which has come to light in England, describes clubs as being “on the brink of financial disaster” and calls for “urgent reform”. The main source of cash-flow pressure is the relentless effort to remain competitive by constantly raising player salaries.
Why EFL and National League clubs are on the edge
The investigation describes a dangerous cocktail of rising debt and excessive dependence on owner funding. That combination puts both clubs and their fans at risk. More than six out of every ten EFL and National League teams are technically insolvent, and more than a quarter would not survive beyond a month if their owners pulled their funding.
The problem goes beyond player wages. The rise in operating costs is so steep that as many as 17 clubs in those divisions would still record losses even if they paid no salaries to their squads at all.
The growing gap between the Premier League and everyone else
Money is not distributed evenly. A top-flight English club earns, on average, eight times more than one in the Championship. The assistance given to teams relegated from the Premier League forces the rest to make highly risky financial efforts just to compete on similar terms.
The historical trend confirms the widening divide. In 1992, the average revenue of a Premier League club was 2.7 times higher than that of a Championship side. Today that difference has grown to 8.7 times.
How wages and losses have grown in five seasons
Between the 2021-22 and 2025-26 campaigns, wages rose by 33 percent in the Premier League, 32 percent in the Championship, 71 percent in League One and 63 percent in League Two. Clubs in the lower divisions have taken on aggressive pay increases despite operating with far smaller margins.
Losses follow the same pattern. The Premier League went from £20 million in 2021-22 to £44 million in 2025-26. The Championship worsened from £13 million to £22 million in a single season. In League One, negative figures have tripled over five campaigns, while in League Two they have multiplied fourfold.
Total debt in English football is soaring
Combined debt has risen from £2.8 billion in 2020-21 to £4.1 billion in 2024-25. Projections point to a total of £5.1 billion during the current financial year. Premier League clubs account for 75 percent of that entire debt.
In the 2025-26 season, English football generated more than £9 billion. Of that amount, £7.5 billion came from the Premier League, £1 billion from the Championship, £460 million from Leagues One and Two, and just £70 million from the National League. The concentration of wealth at the top stands in stark contrast to the extreme fragility at the base of the pyramid.
Frequently asked questions about the crisis in English football
Frequently asked questions
What percentage of English clubs are making losses?
According to the Independent Football Regulator's report, 94 percent of clubs in England are recording losses. The figure affects teams across every division in the country.
How many EFL and National League clubs are insolvent?
One third of the teams competing in the EFL and National League are in a state of insolvency. More than 60 percent are considered technically insolvent by the regulator.
Why are English clubs in financial crisis?
The main factor is the constant rise in player wages in an effort to stay competitive. Increasing operating costs and excessive reliance on funding from owners also play a major role.