Independent Football Regulator reveals State of the Game report details

English football’s Independent Football Regulator (IFR) has confirmed that Premier League parachute payments will be reviewed as part of its first major assessment of the men’s professional game, a wide-ranging “State of the Game” report that the watchdog says will be the most in-depth analysis of the industry ever conducted. The regulator, which has been operating as a standalone body since November, has published the proposed scope and terms of reference for the report, describing it as “ground-breaking” work that will “shine a light on the financial pressures, governance gaps, and structural risks” facing clubs across the football pyramid. David Kogan, chair of the Independent Football Regulator, said the report would provide a level of clarity the sport has not previously had. “The game has never been examined like this before,” he said. “For the first time, we will shine a light on the financial pressures, governance gaps, and structural risks facing the football pyramid. 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 State of the Game report, a draft version of which is due to be published later this year with a full report expected in 2027, will examine how money flows through the top five tiers of English men’s professional football, alongside the strength of clubs’ balance sheets. The regulator said it will use statutory powers to access information from clubs and competition organisers, enabling it to assess issues including club debt and liquidity, models of ownership, the evolving broadcast landscape, and the impact of player wages and academy development on the long-term financial sustainability of the game. It will also consider the “cliff-edges” between divisions, which can create sharp financial shocks when clubs are promoted or relegated.Parachute payments, which can be worth tens of millions of pounds to relegated Premier League clubs over a three-year period, are expected to be a central focus given their role in the long-running dispute between the Premier League and the English Football League over redistribution. The EFL has argued that the payments distort competition and has pushed for them to be scrapped so more of the top flight’s wealth can be shared more widely across the pyramid. The Premier League, however, maintains that parachute payments are necessary to give club owners confidence to invest and to protect clubs that have built Premier League-level cost bases.The failure of the two leagues to reach a new financial settlement has been a persistent flashpoint in English football governance, and the regulator’s work is set to feed directly into its future role in that debate. Under the legislation establishing the IFR, the watchdog will have “backstop powers” to mediate a financial settlement if the Premier League and EFL continue to fail to reach an agreement, with the evidence gathered in the State of the Game report helping it determine how much redistribution should be expected from the Premier League. Richard Monks, IFR chief executive, said the report would be used to test the industry’s assumptions and expose where change is needed. “The State of the Game report will be the most in-depth assessment of the football industry ever conducted,” he said. “It will help the IFR to scrutinise decisions, challenge existing practices, and ensure clubs meet expected standards. Clubs, investors, and fans will see clearly where the game is thriving – and where action is needed.” Beyond finance and governance, the regulator said the report will also examine Equality, Diversity, and Inclusion, fan engagement, and club heritage, including a review of existing protections around stadiums, club crests and club colours. Ticket prices and the video assistant referee system will not form part of the report’s scope.