- First draft of ‘State of the Game’ report to be published this year, ahead of final report in spring 2027
- IFR chair David Kogan says analysis will “shine a light” on financial pressures, governance gaps and structural risks
English soccer’s regulator will, as expected, consider parachute payments and “cliff edges” within and between leagues in a landmark report to be published initially in draft later this year.
The English Football League (EFL) and its chairman Rick Parry have long felt that the payments to clubs relegated from the Premier League have a distortive impact on the Championship.
The Independent Football Regulator (IFR) confirmed on 20th January that the payments will be examined, along with the distribution of revenue across the pyramid more widely, as part of the promised ‘State of the Game’ report.
A first draft report will be published and consulted on later this year, ahead of a final report in the spring of 2027, the IFR said.
The IFR will have backstop powers to impose a financial settlement on the EFL and the Premier League if one cannot be agreed between them.
Parachute payments were initially excluded from the scope of what the IFR could consider when determining a settlement, but the Football Governance Bill was amended to include them if the backstop was required and the payments were deemed relevant to the financial sustainability of the pyramid.
The EFL welcomed that change given its view on the impact the payments have. The league will also no doubt be encouraged by the IFR’s commitment to examine cliff edges between and within leagues, given what it sees as the impact of the disparity between top flight and second tier revenues more broadly.
The Premier League sees parachute payments as essential in giving promoted clubs confidence to invest by protecting them to a degree from the financial shock of relegation. The payments are made on a reducing scale across a three-year period.
The IFR State of the Game report will cover a wide range of issues affecting the English game, including the economics of the soccer industry, the financial soundness of clubs, the resilience of the soccer financial system and how clubs perform on fan engagement and corporate governance.
IFR chair David Kogan said: “The game has never been examined like this before. 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.”
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