Football regulator targets debt heavy takeovers as first state of the game review begins

English football’s new Independent Football Regulator has signalled it could make it harder for investors to buy clubs using large amounts of debt, as it begins work on its first “state of the game” assessment of the professional men’s pyramid. According to a report in the Financial Times, Richard Monks, the IFR’s chief executive, said the watchdog would assess takeovers case by case but would scrutinise highly leveraged buyouts that can leave clubs carrying heavy interest costs and repayment burdens for years. Monks said: “We want clubs and owners to have ambitions and dreams. We’re not risk averse. That’s what makes English football so special and that’s what fans want. “But at the same time, we don’t want the future of clubs to be gambled away. And I think because of that, we would look very, very closely at highly leveraged buyouts, for example.” He added the IFR did not want sustainability to mean “the stability of a graveyard” and said clubs would not be expected to break even, but suggested debt-heavy buyouts may have limited scope going forward. “Something we would strongly consider is whether highly leveraged buyouts have any place in football. I suspect they don’t,” Monks said. The IFR last week set out the financial information it plans to request from clubs and leagues as part of the report, which it has described as the most in-depth assessment of the football industry ever conducted and is due next year. The regulator said the findings would inform its policy approach once the licensing regime is in place.Under the reforms, the IFR will have the power to block takeovers if it judges funding to be insufficient. Monks said the regulator would not impose blanket borrowing rules, but would examine individual deals and club finances, including liquidity, solvency and business models. The use of debt to fund acquisitions has been a flashpoint since the Glazer family bought Manchester United through a leveraged buyout in 2005, a model that critics argue left the club paying large sums in interest and debt servicing.English football’s finances have also remained under pressure. Monks pointed to the risks created by clubs’ reliance on shareholder funding, warning that sudden withdrawal of owner support can trigger immediate crisis, while the FT report cited Sheffield Wednesday’s administration after its owner stopped putting money into the club. The Premier League has already moved to restrict the scale of leveraged buyouts. In 2023, clubs voted to introduce an “acquisition leverage” cap of around 65 per cent, aimed at preventing fully leveraged takeovers of the kind seen at United. The IFR was created to improve governance and financial sustainability across the professional men’s game, with Monks appointed as its first chief executive in October 2025.