Independent Football Regulator wants to hit Newcastle United with further financial restrictions - here's why
The recently established Independent Football Regulator has called for further financial measures in English football.
The Independent Football Regulator has called for stronger financial controls across English football - warning that clubs are becoming increasingly reliant on wealthy owners to stay afloat.
In its State of the Game report, the IFR found that 94 per cent of clubs across the top five divisions made losses last season. The independent body - formed last year - also forecasts that total debts in the Premier League, EFL and National League will rise to £5.1billion next season - up from £4.1billion.
Financial regulation is under the spotlight after Manchester City were found guilty of breaching the Premier League’s rules on an unprecedented level last month. For Newcastle United, the report adds to a debate over whether they should be allowed to challenge the established elite.
Since the Saudi-backed takeover in October 2021, the Magpies have been frustrated in their attempts to take on the big six. Newcastle reluctantly sold Elliot Anderson and Yankuba Minteh in 2024 to comply with PSR requirements.
Recent windows have seen Newcastle picked apart for star assets like Alexander Isak, Anthony Gordon, Sandro Tonali and Bruno Guimaraes. That is despite having owners worth almost £1trillion that are willing to invest.
The IFR report highlights the wider financial pressures facing the English game, with the average Premier League club earning nearly nine times as much as their Championship counterparts. Average losses among top-flight clubs have more than doubled over the past five seasons - reaching £44million per year.
Across the 116 clubs examined, total debt has risen from £2.8billion in 2020-21 to £4.1billion, with Premier League sides accounting for three-quarters of the total. It is also stated that nearly two-thirds of clubs in the EFL and National League were technically insolvent, while more than a quarter across the five divisions could run out of cash within 30 days if owner funding stopped.
The regulator has called for stronger financial controls and greater funding to flow from the Premier League to the EFL. Negotiations over a new financial settlement between the leagues are nearing a conclusion.
However, the IFR warned that additional funding must not encourage clubs to overspend, calling for action to reduce losses across the game. The prospect of tighter measures is not news that will excite Newcastle fans, who are keen to see PIF given more freedom to invest at St James’ Park.