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English football regulator to cost clubs £20.3m a year, double the initial estimate

The annual cost of England's Independent Football Regulator (IFR) to clubs has risen to £20.3 million, around double the figure originally projected. The watchdog has proposed a levy to fund its operations from next season. Payments will be progressive, with Premier League sides contributing the most.

JaviByJaviVerified account5 min read
Exterior view of the Independent Football Regulator headquarters with English club flags on display
Exterior view of the Independent Football Regulator headquarters with English club flags on display

Professional football clubs in England will face an annual bill of £20.3 million to fund the Independent Football Regulator (IFR), a figure that doubles the original projection for the watchdog. The new levy, which takes effect from next season, will apply to clubs across the top five tiers of the men's game.

  • The annual cost jumps from around £10 million estimated to £20.3 million.
  • The levy covers £18.3m in operating costs and £1m for potential litigation.
  • Top Premier League clubs would pay up to £1.8m per season; League Two sides around £6,000.
  • The IFR calls the amount proportionate and far lower than Premier League or EFL running costs.
  • 94% of clubs are loss-making and more than 60% of EFL and National League sides are technically insolvent.

How the new £20.3 million football regulator levy breaks down

The fee presented by the regulator includes £18.3 million to cover the operating costs of a 100-strong workforce. On top of that comes £1 million earmarked for possible litigation and a further £1 million to pay down part of the total set-up cost, which stands at £45 million, over the next ten years.

The original projection, set out in a 2019 impact assessment before legislation was finalised, placed annual operating costs between £8 million and £10.2 million for the first ten years. The bill has now doubled before the levy has even come into force.

Why the IFR says the higher bill is affordable for football

Richard Monks, the IFR's chief executive, has pushed back against criticism by acknowledging he is aware of the £10 million reference point, but insisting it reflects neither the current financial reality nor the task ahead. His central argument is that the new levy is proportionate and affordable for English football.

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.

Monks added that it amounts to a relatively modest investment in moving toward a more sustainable ecosystem that provides peace of mind for fans, clubs and their local communities.

How much each club will pay across the English divisions

The proposed distribution is designed so that the greatest contributions come from those who can most afford them. Clubs competing in UEFA and FIFA competitions, as well as those receiving Premier League parachute payments, will pay more.

Under the IFR's estimates, the highest-earning Premier League clubs would be charged up to £1.8 million per season, with most paying around £600,000. Championship clubs without parachute payments would pay roughly £45,000 a year. The figure drops to around £9,000 in League One, £6,000 in League Two and less than £600 per season in the National League.

The regulator steps in amid a financial crisis in English football

The IFR argues that a £20.3 million levy is significantly lower than other UK regulators and than the reported administrative expenses of football's own governing bodies. The Premier League passed the £200 million mark in 2024/25, while the EFL was close to £35 million.

The new charge arrives barely a week after the regulator published its State of the Game report, which painted a bleak picture: 94% of clubs are loss-making and more than 60% of EFL and National League teams are technically insolvent.

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

Frequently asked questions about the English football regulator levy

Frequently asked questions

How much will the English football regulator cost clubs?

The annual cost will be £20.3 million, roughly double the original projection. The amount covers operating expenses, a litigation fund and the repayment of set-up costs over ten years.

Which clubs have to pay the new regulator levy?

All regulated clubs in the top five divisions of English men's football will be required to pay. The obligation starts from next season.

How much will a Premier League club pay compared to a League Two side?

The highest-earning Premier League clubs would pay up to £1.8 million per season and most around £600,000. A League Two club would pay roughly £6,000 a year, while National League sides would pay less than £600.

Based on reporting by BBC Sport.