Premier League riches hide a potential crisis: could the bubble burst in English soccer?

English soccer is a financial disaster. And that’s not the verdict of those who have long questioned the hundreds of millions spent by Premier League clubs in every transfer window. It’s the finding of State of the Game, a 244-page report compiled by the Independent Football Regulator (IFR) over the past 18 months. After England’s top flight shattered every conceivable spending record last summer, splashing out more than $4.8 billion in gross transfer fees, with a net spending deficit of almost $1.9 billion, the IFR has laid bare the serious financial problems facing English soccer.

The report not only concludes that the sport’s finances are “dangerously exposed”, but also warns that “most English clubs are on the brink of financial disaster.” Beyond the increasingly significant financial disparities between Premier League clubs themselves, the combination of “rising debt” and “an overreliance on owner funding” has left 94% of clubs reporting losses.

Despite clubs generating £9 billion ($12.1 billion) in revenue during the 2025-26 season, Champions League qualifiers receiving an average of £80 million ($107 million), and soccer clubs growing 10 times faster than the UK economy since 1992, when the Premier League was founded, the reality is that 20% of Premier League clubs and 60% of clubs in the English Football League (EFL) and National League are “technically insolvent.”

In other words, just seven of the 116 clubs that make up English professional soccer and fall under the IFR’s jurisdiction avoided reporting losses in State of the Game. A staggering figure. More than a quarter of all clubs across England’s top five divisions would run out of cash within a month if their owners withdrew financial support. Meanwhile, a third would be unable to survive more than three months without funding from a new owner.

The alarming figures behind English soccer’s financial crisis

• 94% of clubs reported losses.
• 66% could not survive more than 90 days without funding.
• 29% could not survive more than 30 days without that funding.
• 68% have no contingency plan if their owner withdraws.

Although the Premier League and EFL are expected to reach an agreement soon on a new funding system that would see the top flight share more revenue with the rest of the soccer pyramid, that handshake has yet to happen. And time is running out.

That is why the IFR, presenting its report in Manchester, urged clubs to focus on revenue distribution, reducing losses, financial and corporate governance, and developing a specific strategy for the National League. Its recommendations come amid a growing trend of clubs using future transfer payments as collateral in exchange for immediate cash injections.

“If football cannot find a solution, we will consider our next steps and will not hesitate to use all the powers at our disposal to bring about lasting change,” State of the Game also warns.

The IFR has the authority to impose an agreement. Having urged clubs to address mounting losses linked to what it calls “transfer financing” and to give greater consideration to supporters’ views, the regulator has made its position clear.

Now it is up to English clubs, starting with those in the Premier League, to do their part. Unless, of course, they want to see English soccer’s financial bubble burst.

Get closer to the game! Whether you like your soccer of the European variety or that on this side of the pond, our AS USA app has it all. Dive into live coverage, expert insights, breaking news, exclusive videos, and more. Plus, stay updated on NFL, NBA and all other big sports stories as well as the latest in current affairs and entertainment. Download now for all-access coverage, right at your fingertips – anytime, anywhere.

And there’s more: check out our TikTok and Instagram reels for bite-sized visual takes on all the biggest soccer news and insights.