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Ivory CoastNew English Regulator Prepares Landmark State Of The Game Financial Report
A major report on the financial health of English football comes out on Tuesday as the new regulator warns that many clubs live on the edge.
Financial Health Under The Microscope
A landmark report examining the financial health of English football will be published on Tuesday. The State of the Game report comes from the new Independent Football Regulator.
IFR chair David Kogan has previously warned that the current system is dangerous for teams across the entire pyramid. He noted that multiple clubs told the regulator they would not be able to survive a single month if their owner stopped funding.
Relegation remains a massive threat to teams. Clubs facing relegation can see their revenues cut by up to 80 percent if they fail to bounce back quickly. This problem hits teams falling from the Premier League to the Championship, but it also affects those dropping from League Two into the National League.
Revenue Sharing Talks Hit Stumbling Blocks
The report arrives while the Premier League and the EFL continue to discuss a new financial settlement. Talks started over the summer, with top flight clubs proposing an extra £180 million a year as part of a 10 year deal.
However, the EFL pushed back on the offer. Officials questioned both the duration of the deal and the yearly amount. Championship clubs also expressed concern over cost control rules attached to the proposal, which they feel are too strict.
If the leagues fail to reach a settlement on their own, the regulator holds backstop powers. That means the IFR can step in and impose an agreement on both parties. The report will also review existing arrangements, including the impact of parachute payments given to relegated Premier League teams.
Regulatory Powers Over Owners And Directors
The regulator is also tracking the situation surrounding Manchester City. The club was found guilty of breaking Premier League financial rules and has filed an appeal.
Kogan said the case raised serious issues. While waiting for further developments, he highlighted the regulator's authority to test the suitability of owners and directors if clear evidence of wrongdoing exists.
In the most severe cases, the regulator has the power to strip directors and managers of their roles. It can even force owners to sell their stakes in clubs.
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