Premier League clubs are warned of condemning the EFL to a “near death sentence” with more to follow Sheffield Wednesday amid their collapse.
As per the Mirror, David Kogan, the chair of the new Independent Football Regulator, says that Premier League clubs’ failure to agree a fairer financial redistribution deal is seeing those in the Football League struggling to remain in a fit state.
He also mentioned about Sheffield Wednesday’s ongoing crisis, made worse by a recent takeover deal collapsing just days after relegation to League One was confirmed, in a season they also went into administration and faced a 12 point deduction.
David Kogan predicts even more EFL clubs could suffer the same fate, with some potentially going out of business within a month without support.
Currently, Premier League clubs share 16% of TV revenues with the pyramid, but the Football League wants 25% and an end to parachute payments.
Kogan is urging for an agreement soon, or the Independent Football Regulator will be left with no choice but to intervene under new powers ahead of the “State of the Game” report by year-end.
Earlier this month, Premier League club chiefs met with David Kogan attending for the first time as regulator. Again, he discussed about the Premier League needing a deal with the EFL over the distribution of finances down the leagues.
Premier League clubs sent “near-death sentence” with more clubs on the brink after Sheffield Wednesday financial meltdown
— John Cross (@johncrossmirror) February 26, 2026
Listening to IFR chair David Kogan on behalf of @FairGameUK
He said: “Our clear objective is to make pyramid more sustainable
“We are not after a deal. We want a long-term sustainable strategic settlement.
“At this moment the IFR does not have solution what that might be.” pic.twitter.com/nFEKBrXIYd— Niall Couper (@NiallCouper) February 26, 2026
David Kogan, the head of the new Independent Football Regulator, said at the Financial Times Live event: “Alongside the success story of English football, the current system bakes in risk.
“Multiple clubs throughout the pyramid have told us they would not be able to survive a month if their owners pulled funding for one month. Players’ wages have been rocketing across the whole of the pyramid. We cannot continue to finance this arms race.
“And relegation for many is a near-death sentence. Clubs facing relegation could see their revenues cut by up to 80 per cent if they fail to bounce back quickly.
“The whole pyramid is facing a series of cliff edges that people talk about, but they have not been addressed. Despite all the money coming in for media rights deals and all the other forms of income that are now coming in, increasingly not for media rights deals, you’ve still got a pyramid that is riven with debt and riven with risk.
“If you want an example of why we exist, well, it’s only got to look at the situation in the last 24 hours at Sheffield Wednesday. This is one of the largest, most prestigious names in English football, one of the founders of English football, one of the founders of the Premier League, that has spent the last two or three years in absolute chaos, including yesterday.
“We have real powers to intervene if football cannot reach agreement, the so-called backstop clause. It would be an utter failure by football not to seize the moment and get over the stasis that currently exists. A deal done in 2019, which is the last time a deal was done, that simply relies rolling over year by year to no one’s satisfaction, is not sensible practice and it will lead to unsustainable levels of pressure within the system.
“It’s to everyone’s benefit for football to try and reach this understanding. My message is that the pyramid needs to survive as it exists today. And to do that, English football must come together and end this uncertainty. And it needs to do it now.
“But if the leagues can’t find a new deal, those powers will be enacted. And we will be looking at things such as the current mechanism for parachute payments, the cliff edges and the other features of the existing deal. Clearly this has been an ongoing issue between the Premier League and the EFL for the last few years.
“Parachute payments are not an unknown topic, and the level of fiscal imbalance that they may or may not create is an issue that clearly we’re going to have to address.”
Five months ago, he talked about the crisis at Sheffield Wednesday, and sent a powerful warning to other club owners.
He highlighted Sheffield Wednesday as a “significant problem” in English football due to owner Dejphon Chansiri’s failures, including unpaid taxes (HMRC) and player wages, leading to a sixth transfer embargo.
In BBC interviews, he expressed full sympathy for fans, spoke about the importance of protecting historic clubs like Sheffield Wednesday from irresponsible ownership since 1992, also referencing clubs like Bury.
He met with supporters’ groups, MPs, and EFL, while also aware of political pressure in Sheffield and was said that IFR powers, including an investigation and intervention, would activate via consultations and secondary legislation.
It can also force unsuitable owners to sell as a “last resort” if evidence shows mismanagement; prefers collaboration but will act decisively.
Nor will it dictate club operations, no forcing relegation for sustainability, but ensures financial viability across 116 pyramid clubs.
There are broader warnings for club owners and the state of football with many clubs operating at losses; with the IFR to assess risks, mitigate unsustainable models assuming endless funding.
Also, English football is reportedly in a ‘shocking state’ as the New Fair Game Index report reveals just FOUR full-time clubs are ‘regulator ready’.
New IFR chair talks Sheffield Wednesday crisis, and sends powerful warning to other club owners
English football in ‘shocking state’ as report reveals just FOUR full-time clubs are ‘regulator ready’