The head of the Independent Football Regulator (IFR), David Kogan, has stated he will resign if there is any political interference in the regulator's handling of Manchester City’s financial misconduct case. The club, owned by Sheikh Mansour of Abu Dhabi’s royal family, faces an ongoing appeal after being found guilty of breaching Premier League financial rules, including artificially inflating revenues by over £900 million between 2009 and 2018.
Kogan made his remarks during the launch of the IFR’s first State of the Game report, which highlights significant financial instability across English men’s professional football. Despite generating around £9 billion in revenue last year, 94 percent of clubs reportedly operate at a loss, with many reliant on owner funding to remain solvent. The report warns of a "dangerous cocktail" of mounting debt, rising transfer liabilities exceeding £3.3 billion, and a fragile financial position that puts clubs and fans at risk.
The Manchester City findings have raised concerns about potential political pressure on the regulator, given the club’s high-profile ownership and ties between the United Kingdom and the United Arab Emirates. Earlier comments by Prime Minister Andy Burnham, who expressed being “really concerned” about the possibility of City’s owners being forced to sell, amplified speculation about government influence. Downing Street later emphasised that no individual or club is above the rules and that all wrongdoing must face consequences.
Kogan firmly rejected any suggestion of political interference, asserting, “Our independence is absolute, and my independence, personally, is absolute. Any form of political interference on the way we operate is going to result in my resigning.” He added that no pressure had been exerted on the IFR and he did not expect it in the future. The regulator will await the appeal outcome before determining whether any individuals at City are unfit to serve as owners or directors, a process governed by fit and proper person tests covering integrity, honesty, and financial soundness.
Should the appeal uphold the commission’s verdict, the IFR has the authority to require the sale of the club if the owner is deemed unsuitable. The Football Association (FA) could also bring charges against directors and executives involved. Kogan noted that if legal challenges arising from these decisions prove lengthy or costly, the regulator would seek additional government funding.
In addition to addressing ownership issues, the IFR is preparing to introduce a new mandatory licensing regime for English football clubs, including those competing in the Premier League, English Football League (EFL), and National League. Licenses will be based on criteria such as financial health, governance, and fan engagement, with the power to impose disciplinary sanctions for breaches. The regulator also plans to enforce stricter rules against “creative compliance” tactics that artificially improve financial results.
The State of the Game report revealed a widening financial divide within English football, where top Premier League clubs earn substantially more than lower-league teams. Nearly two-thirds of clubs outside the Premier League are technically insolvent, with some unable to survive more than a month without additional owner funding. The report also called for reforms to parachute payments awarded to clubs relegated from the Premier League, suggesting a redistribution to reduce disparities in the Championship.
While the City's case continues to unfold amid these broader financial challenges, Kogan emphasized that the IFR’s mandate is to regulate without bias or external influence, ensuring the stability and integrity of English football’s governance and finances.