The Independent Committee's Take On The Man City Appeal

The Independent Football Regulator

Chair David Kogan said the Independent Football Regulator (IFR) was created in response to concerns about excessive control by football owners and the financial failures of clubs such as Bury. Its aim is to make clubs more resilient and prevent them from collapsing—not to punish them or close them down.

Financial risks across football

The IFR’s first State of the Game report describes serious financial risks across the football pyramid:

• 94% of clubs are loss-making.
• 60% of clubs in the EFL and National League are technically insolvent.
• 32 clubs have cash reserves covering 30 days or less.

Kogan said clubs’ vulnerability is often about short-term liquidity as much as debt. If an owner withdraws funding, a club may quickly struggle to pay staff or maintain basic services.

Club licensing and monitoring

From November, the regulator plans to license all 116 clubs in the leagues it oversees. It will ask clubs whether they have:

• A business plan.
• A plan for relegation.
• A plan for surviving if their owner leaves.

Supervisors will monitor clubs regularly, using financial information and warning signs to identify problems early. The IFR can impose licence conditions, and Kogan said it can require an owner to step away if they fail to meet its standards.

Funding negotiations

Kogan described negotiations between the Premier League and the EFL over a new funding arrangement. Proposals under discussion include increased solidarity payments, a redevelopment fund and a liquidity fund to give troubled clubs time to find new owners.

The proposals would also reduce parachute payments and increase Championship funding, narrowing the financial gap between relegated clubs and their competitors. Kogan said the money would come from football, not the government, and that the game would also cover the IFR’s costs.

Manchester City appeal

Kogan declined to reach a view on Manchester City’s appeal before the process is complete. He said the IFR needs to see the appeal outcome, any sanctions and the full, unredacted findings before deciding whether to investigate.

The regulator cannot impose sporting penalties such as points deductions. Its role would be to assess the conduct of owners, directors and senior executives under its ownership tests. Kogan said the IFR could ultimately require an owner to leave a club, but stressed that any action could have wider consequences for clubs, supporters and other proceedings.

The regulator’s limits and wider concerns

Kogan said the legislation does not allow the IFR to reject an owner simply because they are foreign or state-backed; decisions must be based on the statutory criteria. He said the government has not pressured him and that he would resign rather than act under political pressure.

The IFR does not support a salary cap and does not have the power to introduce one. Kogan also highlighted rising transfer debt and more than £500 million in agents’ fees as wider financial concerns.

What success would look like

Kogan said success would mean clubs having greater financial security, effective support when problems arise and—above all—no clubs going under. He also pointed to plans to improve how fans are heard by club boards, while noting that supporters do not always agree on the solutions.

Presenters and contributor

• Presenters: Gary Lineker and Alastair Campbell
• Guest: David Kogan, chair of the Independent Football Regulator