The Premier League and EFL have both welcomed the Independent Football Regulator’s State of the Game Report.The landmark report assesses the financial sustainability of football in England.Former prime minister Keir Starmer pledged to reform English football governance prior to winning the 2024 general electionGettyWhat is the report?Reporter Ben Jacobs told talkSPORT: “The report highlights a game loaded with both revenue and risk.“Professional clubs brought in £9billion in 2025/26. And Premier League clubs have actually grown on average 10 times faster than the UK economy itself since 1992.“And yet at the other extreme, 94 per cent of clubs make losses, 32 clubs could not survive 30 days without owner funding, 60 per cent of EFL and National League teams are technically insolvent, 20 per cent of Premier League clubs fall into this category as well.“The solution focuses on revenue distribution, with the independent football regulator confident that a funding deal will be finally reached between the Premier League and the EFL.“And the independent football regulator has outlined plans to address financial losses, look into a National League specific strategy and tackle financial and corporate governance.”What have the Premier League and EFL said about the report?The 250-page report has initially been released in draft format.A statement from the Premier League read: “The Premier League welcomes the publication of the Independent Football Regulator’s (IFR) draft State of the Game Report. “The Report recognises what English football has built – the world’s most popular league, the leading second tier, and a pyramid of unmatched depth. It also identifies key challenges within the game that need to be addressed in partnership. “The Premier League shares the IFR’s preference that there should be a football-led solution to revenue distributions. As the Report makes clear, new funding must go hand in hand with effective financial controls and wider reforms to strengthen clubs. “We believe the proposal we have made to the EFL, which was unanimously approved by Premier League clubs in July, meets the objectives the IFR has set out in its Report. The League remains committed to concluding a long-term partnership with the EFL that is fair, generous and balances the interests of all clubs. The report presents tough reading for Premier League and EFL clubsGetty“We will now study the Report in detail before responding to the consultation, and will continue to work constructively with the IFR, and all stakeholders, to protect and strengthen the deepest professional pyramid in world football.”The report comes against the backdrop of Manchester City being found guilty of breaching Premier League financial rules, a verdict which the club have appealed.An EFL statement, meanwhile, read: “The Independent Football Regulator’s draft State of the Game Report provides a significant and comprehensive assessment of the financial health of English football.“On first review, many of the Report’s central conclusions reflect concerns the EFL has consistently raised since the publication of the Fan Led Review, particularly the disproportionate distribution of growing revenues and the financial cliff edges this has created, most notably between the Championship and the Premier League. These pressures are distorting competition and contributing to rising losses, debt and over reliance on owner funding, creating material risks for clubs throughout the pyramid.“These initial findings reinforce the EFL’s longstanding position that English football generates sufficient revenue to sustain both a successful Premier League and a thriving pyramid. The EFL’s purpose is to help make Clubs sustainable and the challenge is not simply how much money flows into the game, but how it is distributed and spent. A more appropriate distribution of revenues must therefore be accompanied by effective and enforceable financial regulation, ensuring that additional resources strengthen clubs’ financial position, rather than contributing to further cost inflation.“The EFL welcomes the Report’s focus on reducing financial losses, strengthening Clubs’ management of financial risk and ensuring that governance standards reflect the risks across the pyramid, including at National League level. We also recognise the importance of meaningful supporter engagement, strong corporate governance and greater diversity in club leadership. These priorities must form part of a coordinated programme of reform alongside improved revenue distribution and effective cost controls.Sheffield Wednesday are among a number of EFL clubs to find themselves in financial difficulties in recent seasons, beginning the last Championship campaign with a points deduction for entering administration and committing financial breaches under former owner Dejphon ChansiriGetty“In the more immediate short term, the EFL remains committed to working constructively with the Premier League and the Regulator to secure a financial settlement in the interests of the whole game.“As the Report proceeds to consultation, we will consider its evidence and recommendations carefully, consult our Clubs and submit an appropriate response. We will also engage fully with the IFR’s six-point action plan, with the aim of delivering coherent, long-term reform that improves financial resilience, safeguards Clubs as community assets and supports the continued strength and competitiveness of English football at every level.”What is the Independent Football Regulator?A non-departmental public body of the Department for Culture, Media and Sport (DCMS), the IFR was set up in September last year with the purpose of preserving and encouraging the sustainability of football, having first been announced back in 2023.It followed the passing of the Football Governance Act 2025.The body is chaired by Richard Kogan, with Richard Monks serving as chief executive.A final version of the report is expected to follow next spring.