The chair of the Independent Football Regulator has stated that the Premier League and English Football League must resolve their financial deadlock without delay, emphasizing that “the clock is ticking.”
Discussions have been ongoing regarding how the Premier League can better support the football pyramid, focusing on contentious issues such as parachute payments and solidarity payments—which are distributed to EFL clubs twice a season.
Currently, the Premier League and EFL are at odds over a 2019 agreement and have yet to find common ground on a new settlement. Meetings scheduled for 2023 and 2025 did not yield any agreements.
David Kogan expressed to the Financial Times Business of Football Summit that if an agreement is not reached soon, the IFR may have to intervene, which he described as “an utter failure by football.”
Kogan noted that there is a “stasis” in negotiations that is detrimental to the sport. He stressed, “Moving forward, it’s crucial for the health of football that an understanding is reached. My message is clear: the pyramid must survive in its current form. For this to happen, English football needs to unite and resolve this uncertainty now.”
He emphasized, “While we prefer that football resolves its own issues, if a new deal cannot be established, we are prepared to implement necessary measures, including reassessing the current structure of parachute payments.”
“Our goal is to foster a more sustainable football environment. I hope my message encourages the process to reinitiate. The urgency is real; the opportunity for progress is available, and we are here to assist in finding viable solutions.”
EFL chair Rick Parry expressed his eagerness to finalize an agreement. He cautioned that the existing system forces Championship clubs to pursue “the most expensive lottery ticket on the planet.”
“We advocate for a system where clubs can rise and fall, maintaining competitive integrity without risking financial ruin,” Parry stated. “Back in the 1992-93 season, the financial gap between the Premier League and the EFL was £11 million; today it stands at £3.4 billion. Premier League revenues have increased 80-fold, whereas the EFL’s growth has been a mere sixfold.”
“This situation demands a fundamental reevaluation, and we believe it is entirely achievable,” he argued. “Championship clubs are facing an average operating loss of £17 million, total debt has reached £1.5 billion, and wage bills often exceed 100% of turnover. The quest for Premier League access is becoming a dangerously expensive gamble.”
Parry concluded that reform of parachute payments is a critical issue requiring immediate attention.
‘Regulator Could Have Prevented Sheffield Wednesday Situation’
Kogan remarked that if the IFR had been established three years ago, the current troubles faced by Sheffield Wednesday might have been avoided.
The Owls have been in administration since October and were relegated from the Championship on Sunday, with a failed takeover bid earlier this week.
“The situation with Sheffield Wednesday over the past 24 hours exemplifies our necessity,” Kogan stated. “This esteemed club, a founding member of both English football and the Premier League, has been embroiled in turmoil for the last few years, culminating in recent events.”
He added, “A regulatory body capable of monitoring and intervening when necessary could have greatly benefited Sheffield Wednesday’s situation. Had we been in place three years ago, our authority might have prevented the current crisis by enabling proactive monitoring of each club’s financial health and addressing potential issues early on, guiding them toward a secure future.”