The independent football regulator (IFR) will release a new report designed to critique governance of football in England, with potential implications for clubs all across the country
England’s independent football regulator (IFR) will review broadcast revenues, player wages and club ownership as part of its State of the Game report.
The report, set to issue its first draft this year, will be “the most in-depth assessment of the industry ever conducted”, according to the IFR, aiming to “shine a light on the financial pressures, governance gaps, and structural risks” of football governance in England.
It will be the first time any study has investigated the main issues affecting English football in this level of detail, with the IFR able to utilise statutory powers to access the information it needs from clubs and competition organisers.
“The game has never been examined like this before. For the first time, we will shine a light on the financial pressures, governance gaps, and structural risks facing the football pyramid,” said David Kogan, Chair of the Independent Football Regulator. “The State of the Game report will give football the clarity it deserves, so decisions by the IFR can be made with confidence and for the long-term.”
The question of parachute payments
It is widely believed part of its research will focuson financial distributions, more specifically parachute payments, which have been in place for clubs relegated to the Championship from the Premier League since 2006.
Parachute payments are paid out to relegated clubs over a three-year period and the value is tied to the Premier League’s broadcasting rights value. Leeds United, Leicester City and Southampton were paid £230m collectively in parachute payments at the start of the 2023/24 season; £48m in the first year, £39m in the second year, and £18m in the third year.
While parachute payments have been in place in order to protect relegated clubs from losing out lucrative Premier League broadcast and commercial revenue, the English Football League (EFL) has argued this has created a financial disadvantage for other Championship clubs.
EFL Chairman Rick Parry has called for parachute payments to be stripped away and in place, use the money to be distributed across the rest of the English football pyramid.
The Premier League has argued in favour of keeping parachute payments in order to help maintain financial sustainability for relegated clubs, as well as keeping them liquid for future investment.
How the IFR will get involved
The IFR was born out of the Football Governance Bill, which was passed by UK politicians in July 2025.
Powers granted to the IFR include independent authority away from the government and footballing authorities, how money is distributed across the English lower leagues, and potentially the power to revoke a club’s parachute payments.
As confirmed in the Football Governance Bill, relegated clubs will only receive parachute payments if their future finances are deemed sufficiently protected, and these payments cannot be reduced within a year of distribution, allowing clubs to plan accordingly.
The IFR will also have the authority to terminate the parachute payments process if it finds the current distribution model is inconsistent with its objectives of long term sustainability and resilience.
In such cases, the Premier League, EFL and National League would be required to restart negotiations and propose a new structure, as draft proposals could be drawn up by the IFR Executive Committee.
What the IFR State of the Game report may also include
The State of the Game report will also address financial sustainability and systemic risks relating to the management and financial future of football in England.
“The State of the Game report will delve into how money flows through the football pyramid; the strength of clubs’ balance sheets; and the opportunities, challenges and risks to the nearly £8 billion industry,” the IFR said in its statement.
The Premier League dropped its Profit & Sustainability Rules (PSR) in November 2025 in favour of Squad Cost Ratio (SCR) rules. This means it is focusing less on if clubs lost £105m over a three year period with PSR, and more on how much clubs can spend (85% of their total revenue) on their squad costs, such as player wages, transfer fees, staff salaries.
One systemic risk that has yet to be resolved is between the Premier League and the EFL over a financial package deal to support the lower leagues; Championship, League One and League Two.
The final meeting to secure a deal resulted in no deal being agreed in March 2024. The Premier League stated at the time a new financial system was needed to be approved by Premier League clubs before it could progress.
Projections for the multi-year package deal were reportedly £836m across a six-year period, with some proposals calling for ‘bigger’ Premier League clubs – such as Manchester United, Liverpool and Arsenal – to pay a higher percentage.
As a deal looked far from being agreed, former UK Secretary of State for Culture, Media and Sport Lucy Frazer said the IFR would be brought in to negotiate the deal.
Other areas the IFR will look to address in the report involves owner suitability processes and financial fair play.
The State of the Game report’s terms of reference will be subject to a four-week consultation, which opened today (January 20).
