Football regulator to propose new funding model amid financial peril

The Independent Football Regulator (IFR), established under the Football Governance Act 2025, is preparing to release its proposals for a new financial distribution model for English men's professional football. This comes as a report by Fair Game, titled 'The Four Pot Solution: Redrawing Football’s Finances,' offers a comprehensive plan to tackle the game's financial peril.

The Fair Game report, the result of 12 months of research, recommends a four-pot distribution model for the £3.2 billion annual broadcasting deal. The proposed pots are: 'Core Funding' for essential club operations, 'Reward Funding' for clubs demonstrating good governance and responsible wage control, 'Ring-Fenced Funding' for long-term sustainable projects like stadium improvements, and 'Escrow' as a safety net against sudden shocks.

Currently, 62% of clubs in the top four divisions are technically insolvent, with average losses soaring and competitive balance deteriorating. Fair Game argues that its model can help reduce wage inflation, owner dependency, and protect clubs from insolvency, while strengthening governance and supporting all divisions of the game.

The IFR, which has oversight over the distribution of broadcast money, is also completing its first State of the Game Report. This report, mandated by the Football Governance Act, will assess the state of the top five divisions and inform the IFR's regulatory approach. The Act requires that recommendations from the State of the Game Report must be addressed in any proposed new distribution deal.