A recent report examining the financial health of English football clubs highlights significant challenges facing the sport’s lower tiers, prompting calls for a revised financial redistribution agreement between the Premier League and the English Football League (EFL).

The report reveals that for the 2025-26 season, numerous clubs operating under the regulator’s oversight are projected to experience financial losses. Notably, 11 Football League clubs recorded expenses surpassing their income even after player wages were excluded, underscoring enduring financial pressures at this level of the game.

Mark Kogan, a key figure involved in the review, attributed some of these difficulties to external factors beyond the regulator’s scope, including the expanding club calendar. However, he emphasized that a crucial step toward improving club finances would be the establishment of a redistribution deal between the Premier League and the EFL.

While acknowledging the Premier League’s position on maintaining parachute payments—designed to mitigate the financial impact of relegation, which can lead to substantial revenue declines—Kogan argued these payments have had a distorting influence that has intensified over time. He suggested that negotiating an agreement to reduce parachute payments while increasing overall financial distribution to all clubs could alleviate this imbalance. According to Kogan, such a change could produce a “softening effect” across the 116 clubs within the professional football system.

The Premier League responded positively to the report’s findings, stating that it confirmed the strength of the English football structure, encompassing the “world’s most popular league,” a competitive second tier, and a deep football pyramid. The league highlighted a recent proposal it made to the EFL, reportedly amounting to £320 million per season, describing it as aligned with the report’s objectives. The Premier League also reiterated its commitment to forging a long-term partnership with the EFL that is equitable and advantageous to all clubs.

The EFL welcomed the report’s conclusions, noting they reinforced its long-held view that English football generates ample revenue to sustain both a successful Premier League and a thriving football pyramid. The league affirmed its ongoing dedication to securing a financial settlement for the benefit of the sport as a whole.

In the political sphere, Lisa Nandy, the secretary of state for digital, culture, media and sport, reacted to the report by asserting that its figures had “blown the doors off the game.” She urged relevant authorities to carefully consider the findings to serve the interests of the game, its supporters, and the communities interconnected with it.

The report adds momentum to ongoing discussions about financial sustainability and equity within English football, spotlighting the need for structural changes to ensure the long-term health of clubs across all tiers.