Football regulator proposes reserves of more than £10m for some clubs

The Independent Football Regulator (IFR) has opened a six-week consultation on proposals that would require clubs in the English Football League and National League to hold at least one month’s wages in reserve, with larger buffers for those most exposed to financial shocks.Clubs assessed as medium risk would also have to cover two months of operating losses, rising to five months for high-risk clubs, a requirement that could take the total above £10 million at some of the biggest loss-makers.IFR chief executive Richard Monks said: “The State of the Game report revealed just how serious the financial issues have become at some of our clubs. It has shown there is an urgent need to take action.“Today we have set out how we plan to work with clubs to establish a more resilient financial base and to reduce their exposure.“Our approach is proportionate to the financial risk and builds in a long lead time for clubs to enable them to stabilise their finances over the next three years.”The proposed buffers are designed to give clubs time to respond if an owner withdraws funding or another source of income falls away, rather than leaving them immediately unable to meet payroll and other obligations.The regulator’s interim State of the Game report found that 94% of the 116 clubs in England’s top five divisions were loss-making, with 32 unable to last 30 days without owner funding and 66% projected to run out of cash within 90 days.At least two thirds of the required reserves would have to be held in cash, eligible government bonds or money market funds, while up to a third could be covered by transfer instalments owed by other clubs.Premier League clubs would face individual assessments rather than a prescribed minimum under the IFR proposal, reflecting the regulator’s view that the top flight’s broadcast income provides greater protection against financial shocks.The Premier League has a separate working capital test under its own rules, requiring clubs to demonstrate at least £12.5 million in combined cash and readily available working capital each month.The IFR plans to begin assessing clubs in June 2027, taking account of their business models, cash flow, debt, governance, liquidity and solvency, with scope to adjust risk ratings as their finances change.Full compliance would be expected by 2030, when the regulator is due to issue its first full operating licences, and clubs that fall short could face tighter licence conditions.