English football 'dangerously exposed' to financial risk, regulator finds

Oct 13 : English soccer clubs are "dangerously exposed" to financial risk, the country's Independent Football Regulator said in a report released on Tuesday, after finding that 94 per cent of clubs in the top five divisions were operating at a loss.

The IFR, established last year, proposed stronger cost controls and contingency planning as part of a six-point plan to improve the financial sustainability of the English game.

Its draft State of the Game report, which will undergo an eight-week public consultation before a final version is published, found nearly two-thirds of English Football League and National League clubs were "technically insolvent" and increasingly dependent on cash injections from owners.

"While some of our clubs are among the richest and most competitive in the world, others are standing on the edge of financial disaster... A significant number of clubs have told us they would not survive if their owners walked away," said IFR Chair David Kogan.

The regulator said clubs should manage financial risks more effectively and have contingency plans in place should owners withdraw their support.

Britain’s culture secretary, Lisa Nandy, said the findings painted a stark picture of club finances.

“Football fans for years have lived with the anxiety of knowing their club could be one bad owner or poor month away from ruin," she said in a statement.

"This report doesn’t just validate that anxiety, it has blown the doors off the game with the most stark uncovering of the state of football club finances in England today."

PREMIER LEAGUE BACKS REPORT

The Premier League said it agreed with the report's preference for a "football-led solution to revenue distribution."

"As the report makes clear, new funding must go hand in