The Independent Football Regulator (IFR) is expected to advise clubs to adopt stricter spending limits in its long-awaited State of the Game report, scheduled for publication on Tuesday.
The 250-page draft, followed by a final edition in the spring after an eight-week public consultation starting this week, will present a troubling assessment of the finances of English men’s football. One of its key findings is that 94% of the leading 116 clubs operate at a loss.
The report will set out several proposals aimed at helping the regulator and clubs achieve greater financial stability. IFR chair David Kogan and chief executive Richard Monks are due to share further information at a press conference in Manchester on Tuesday.
The event is expected to feature questions about whether the regulator could compel Manchester City to be sold if the numerous guilty rulings issued by an independent commission remain in place after an appeal.
Through its strengthened assessment process for owners, directors and senior executives, the IFR can examine whether individuals are suitable to hold their positions when clear evidence of personal misconduct exists.
The State of the Game report was commissioned under the Football Governance Act, the legislation that established the IFR. Nearly 18 months have been spent producing what is regarded as the most comprehensive examination of the football industry and its finances to date.
EFL clubs hope the findings will strengthen their position in ongoing negotiations with the Premier League over a revised financial agreement. However, the report may not fully support their case if it reveals excessive and financially unsustainable spending among a significant number of lower-division teams.
The Premier League has proposed an agreement that would provide the EFL with £180m annually for 10 years, up from the existing £150m arrangement. The EFL is seeking £207m per year, along with the right to reopen negotiations after five years.
The EFL has additionally suggested establishing a new “lifeboat fund” to support clubs experiencing serious financial difficulties.
If the leagues fail to reach their own agreement, the IFR has the authority to impose a financial settlement. Both parties are expected to use findings from the report to reinforce their respective positions.
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