94% Operating at a Loss - English Football Deeply in Debt

English football is in severe financial distress.

This was revealed in a report by the independent football regulator in England (IFR). According to the authority, a staggering 94 percent of the 116 clubs in the top five English leagues are reporting losses. Many clubs are on the verge of financial ruin.

According to the draft report published by "State of the Game", the majority of clubs are not financially viable.

"No Doubt That Intervention Is Necessary"

"While some of our clubs are among the richest and most competitive in the world, others are on the brink of financial collapse," reports IFR Chairman David Kogan. Despite record revenues of around nine billion pounds, expenditures were even higher.

"Anyone who reads this report can have no doubt that intervention is necessary," Kogan emphasizes, highlighting the alarming situation.

The Mountain of Debt Grows Larger

According to the report, debts have now risen to approximately 4.8 billion euros. By next season, they are even expected to grow to around six billion euros.

Approximately three-quarters of these debts are attributable to Premier League clubs.

Distribution mechanisms are also intended to reduce the financial gap between the leagues. According to the IFR report, an average Premier League club now earns more than eight times that of an average second-tier club.