The independent football regulator recently released a damning report on football finance. Some of those findings were:
- 94% of clubs in the top five English leagues made losses in 2025-26
- 17 clubs across the EFL and National League would be loss-making even if their players played for free
- 66% of clubs could not survive for more than 90 days without new owner funding
- 29% of clubs reported they could not survive more than 30 days without such funding
- 68% of clubs have no contingency plan if their owner walks away
Since 2004 there have been 23 league clubs enter into an insolvency event (one of those twice and a second exited administration into a company voluntary arrangement). At PBC we have had experience, having handled two football administrations, while having also advised two other league clubs.
Many may say player wages are far too high, but that is not the principal reason for the current financial challenges, which include:
- Clubs have to fund a full year of trade based primarily on 9 months’ income.
- That income is affected by half of the trading period only benefits from its contribution as the away team.
- All clubs are treated the same by the Football Association, irrespective of what league the club plays.
- Apart from the hard-core fan base, income from game attendances is usually influenced by success on the pitch
- Failure to address taxation matters.
In a review of football governance undertaken by the Secretary of sport and culture, Gary Pettit of PBC was asked to contribute, where he suggested the governing rules are not fit for purpose. It does not matter if you are Arsenal or Peterborough; the rule requirements are the same. That is like saying the cost of repairing the bodywork of a Mini should be the same as that of a Rolls Royce. There is no recognition of the obvious difference. For example, as administrator of a non-league club Gary was asked by the Football Association why he was not looking to reduce overheads by selling players. In response Gary said, “If you can point out a player worth more than a Mars Bar then please point him out and I will sell him tomorrow. This is not Man United!”
A football club is often the centre of a community. When you look at Bury, Macclesfield or Chester, it was not simply a company failing, it had a direct impact on the population and was subject to far more press coverage than an everyday business. However, the fact remains most clubs rely on one person; a benefactor who is open to pouring money into the pit whereas, if it were a normal company their statutory duties would be telling them to close down abruptly.
A well-known business entrepreneur once said when you own a football club you hang your brains on the coat hanger at the entrance as you walk in. Unfortunately, that has been demonstrated on occasions, including a former World club champions rugby league club where they traded long beyond the point of no return on the high financial structure it had adopted.
If your business is experiencing financial difficulties and you need any advice, then please contact PBC Business Recovery & Insolvency on 01604 212150 (Northampton), 01908 033150 (Milton Keynes), 01234 989150 (Bedford) or email to enquiries@pbcbusinessrecovery.co.uk. Alternatively, visit www.pbcbusinessrecovery.co.uk for further information.