Tom Kural

The headline news from today's Independent Football Regulator press conference in Manchester was that the chair, David Kogan, said he "would resign" if there was any political interference from No 10 in his role. Kogan emphasises that he would not be paying any attention to any UK trading relations in deciding whether a club owner was a fit and proper person to own a football club. There was inevitable focus on the Manchester City story and nation states owning English clubs but, more broadly, the IFR focused on the number of English clubs on the precipice in the publication of its long-awaited "State of the Game" report. The game's in a bit of a state. Of the 116 clubs in the top five tiers of English football, “32 would not survive 30 days without owner funding. 73 would not survive 90 days”, according to the IFR. 94% of clubs made losses in 25/26. 60% of EFL and National League clubs are “technically insolvent”. 17 clubs (11 EFL, 6 NL) would be loss-making even if the players played for free. “This is an alarm call for English men’s professional football that must precipitate real and lasting change,” says the Football Supporters’ Association’s chair Tom Greatrex. “The State of the Game report clearly highlights the unsustainable, broken model of football’s finances. How is our national game, which generates billions in revenue every year, in such a perilous condition with so many clubs living hand-to-mouth and reliant on regular handouts from owners?” The IFR chief exec Richard Monks emphasises that “we are not saying football is about to collapse like a pack of cards. We are saying financial risk increases and action needs to be taken.” Main points from today’s press conference with Monks and Kogan at the National Football Museum… On wages. Between 21/22 and 25/26, average player wages cost grew by 33% in the PL, 32% in Championship, 71% in League One and 63% in League Two. Salary cap? Would require Government legislation. Kogan: “We have no statutory authority whatsoever (to tell) a club how to spend its money on players or not to spend it on players.” On growing divide between the divisions. PL revenues have grown 33 times since 1992. L2 revenues grown only 7 times. IFR: “The pyramid is being stretched between the top and the bottom. It has cliff edges.” On the “New Deal” of redistribution of broadcast money between PL and EFL. Talks continue this week. IFR “been facilitating those conversations for the last four or five months. We have a pretty confident feel about this.” If PL and EFL don’t reach agreement, IFR “will not hesitate to use all the powers at our disposal to bring about lasting change”. ie the back-stop to force a deal through. On parachute payments. Kogan: “Our report concludes clearly that parachutes are necessary.” On the changing nature and identity of owners. Kogan: “The type of owners has changed." Less collective. "Individual owners now trying to fight individual corners. Not on the pitch but through lawyers.” On Manchester City situation (found guilty of financial breaches, vigorously denied, currently appealing) and whether its UAE owners are fit and proper. Kogan straight bat: “There is an appeal process going on. We don’t know the outcome of that judgement. So we can’t make any specific judgement. City will argue they have clearly right on their side, as they have argued all the way through, and that will be tested (looked at) by the new independent commission.” Before IFR can make any call. On nation states like UAE with City and Saudi Arabia with Newcastle United owning PL clubs. Kogan: “We are governed by legislation that does not preclude state ownership of football clubs.” So the horse has bolted? Interestingly....“You never know because others in Government may now be looking at the legislation as it was originally written. We may enter a discussion in the fullness of time regarding whether our powers need to be changed in any sort of way.” On those geo-politics, strong UK trading links with UAE and the IFR’s independence. Kogan: “The original legislation (for the Football Governance Bill) by the Conservative Government had in it a reference to ‘we have to take regard for some British trade relationships’ - that was removed from the legislation. Our independence is absolute. My independence personally is absolute. I made it very clear last year in a piece in The Times that any form of political interference on the way we operate would result in my resigning this role. I stand by that. I want to make it crystal clear that we come under absolutely no political pressure on this (City) or any other topic. And I don’t expect to in the future.” IFR can force owners to sell if found to be unfit owners. “We have powers within the legislation that allows us to review not only owners, directors and senior executives, but also whether those owners are fit and proper people to run clubs going forward. That process is reliant on us having very detailed information that would require us to have investigation and then we would make a judgement on legal advice that we receive.” IFR can appoint a third party to sell any club. Club licensing. From November, every club needs to go for a provisional licence issued by IFR. Cost of Agents. “A significant and increasing cost to football clubs”. IFR working with clubs, leagues and Government to address “concerns” about agents’ fees. Positives? Ish. Confirmation that the IFR was needed. Kogan found that when talking to club execs and owners “they all repeatedly say ‘we want regulation’. They think that at some point they are going to get into trouble. Stability is what the pyramid needs.” Monks adds, “English football is a massive success story. We should not lose sight of the success story now worth £9 billion in terms of revenue. Most popular league in the world. Deepest pyramid in the world.” But at risk. Handle with care. That’s why the IFR, the fans’ friend, was brought in. The State of the Game report concludes... the game's in a bit of a state.