Regulator proposes £20.3m levy on clubs in England’s top five leagues — BBC Sport

England’s Independent Football Regulator (IFR) has proposed an annual levy on clubs totalling £20.3m to fund its work. From next season, the regulator’s costs will be paid by all clubs under its supervision in the top five divisions of men’s football in England, BBC Sport reports.

Levy structure

Under the IFR’s plan, £18.3m is to be allocated to operational costs and the work of approximately 100 employees. Another £1m is earmarked for potential legal costs.

An additional £1m will cover the costs of establishing the regulator. Their total cost is estimated at £45m, which is planned to be paid over the next 10 years.

The proposed amount is approximately twice as high as the 2019 forecast prepared before the legislation was finally adopted. At that time, annual operating costs for the first 10 years were estimated at between £8m and £10.2m.

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Size of club contributions

The IFR said that clubs able to afford it should pay higher contributions. In particular, participants in UEFA and FIFA tournaments, as well as teams receiving Premier League parachute payments, will pay more.

According to the regulator’s estimate, the most profitable Premier League clubs will pay up to £1.8m per season, while most league teams will pay around £600,000. Championship clubs without parachute payments are expected to pay about £45,000, League One teams around £9,000, and League Two teams £6,000. For National League clubs, the contribution will be less than £600 per season.

IFR chief executive Richard Monks said the previous £10m estimate does not reflect current financial realities and the scale of the regulator’s tasks. According to him, most clubs will pay around 0.1% of their annual revenue.

The regulator also noted that the proposed levy is significantly lower than the administrative costs of other football organisations: more than £200m for the Premier League in the 2024/25 season and £35m for the English Football League. In a recent report, the IFR said that 94% of clubs operate at a loss, while more than 60% of clubs in the English Football League and National League are technically insolvent.