New report reveals the scale of the problem facing incoming regulator

FAIR GAME today welcomed the news that David Kogan has been named as the Government’s preferred choice as the new chair of the Independent Football Regulator, but added that there is a lot to do if he is to turn the game around.

Fair Game, an organisation campaigning for fairer governance in English football, marked the news by releasing a hard-hitting report exposing the growing financial divide in the men’s English football pyramid. 

Based on the stark financial data, the report calls for the Football Governance Bill, which is due to be debated by MPs for the first time on Monday, to be “right touch, not light touch”.

The report is the culmination of months of research using data from Companies House and UEFA. It reveals how the Premier League is increasing its dominance not just domestically but also across Europe.

The Premier League’s share of revenue in Europe has grown from 24% to 31% between 2012 and 2023. However, that extra revenue has not strengthened the competitive balance in the English football pyramid. Indeed the opposite is true.

In 2007, the Premier League’s share of domestic revenue was 74%. In 2023 that figure was 83%. Over the same period, the share of revenue for League Two halved to just 2%.

This has led to clubs routinely overstretching to try and compete at a higher level, resulting in clubs cutting back on academics, community projects, women’s teams and stadium infrastructure.

By 2023, Fair Game research revealed that 58% of the top 92 clubs were technically insolvent – the highest figure on record.

Niall Couper, CEO of Fair Game, said:

“It is welcome news that the search for a new chair of the regulator is finally coming to a close. But the job will not be easy.

“Today Fair Game released a new report. It has one simple conclusion: the football pyramid is crumbling before our eyes.

“The new chair must be given strong powers to address the endemic problems within our national game caused by a growing financial divide at all levels. 

“This is a now or never moment. Football has entered the last-chance saloon, and MPs must make sure David Kogan has the powers to save it. The regulator must be right touch, not light touch.”

Couper added:

“For too long there have been rogue owners that have put decades of history and traditions of our clubs at risk through reckless spending and poor governance, and fans have not had an effective say in some of the key decisions like changing the club name or relocating their club. However, the biggest issue at the centre of football’s problems remains finances. 

“Currently 95% of the £3.2bn annual broadcast revenue stays with 26 clubs (the 20 Premier League and those clubs who get parachute payments as a result of relegation). A vast majority of this money either goes into the pocket of players, on transfer fees or to the billionaire owners. 

“This needs to change. Giving more money to well-run clubs, clubs who strive to survive, could see them invest in better stadiums, more women's teams, stronger academies and vital community programmes. 

“These improvements would go a significant way to helping resurrect local economies that have been hit hard by austerity and decades of cuts. Done right, it could be a real boon for cities and towns across the country. 

“This is why we are campaigning for an effective Independent Football Regulator who can facilitate this and deliver the growth agenda. But it needs to have the ability to achieve this and that means that the Regulator must be right touch not light touch.

“MPs need to carefully consider this when debating the Bill. This is a chance to have real impact on the long-term future of football and the communities these clubs are part of.

“MPs need to ensure they don’t score an own goal. We need a regulator with teeth.”

Fair Game has identified a total of 15 problems that football needs to address and all 15 will be discussed in depth at workshops on the first day of Fair Game’s Conference: A Fairer Future for Football.

The Conference is taking place on 28 and 29 May at AFC Wimbledon and tickets are available here.