The English football regulator, David Kogan, has warned that relegation can be a “near-death sentence” for clubs, as they face revenue cuts of up to 80% if they fail to bounce back quickly. This stark reality highlights the significant financial disparities between divisions, with the Premier League and Football League struggling to reach a new agreement. Kogan emphasized that the current system “bakes in risk” and urged the leagues to find a solution, citing concerns over parachute payments that give relegated clubs an unfair advantage.
The regulator’s warning comes amid concerns about the financial sustainability of English football, with multiple clubs struggling to survive. Kogan’s comments underscore the need for a fresh financial deal, as the existing 2019 agreement is being rolled over “to no-one’s satisfaction”. The Independent Football Regulator is prepared to intervene if necessary, but prefers the leagues to collaborate on a solution.
