Clubs in England’s top five men’s divisions must fund the regulator from next season. Its proposal would charge the highest-earning Premier League clubs up to £1.8 million a year.
England’s Independent Football Regulator (IFR) proposes a £20.3 million levy on 116 clubs across the top five men’s divisions for 2027–28, the first season of its licensing regime. Its consultation also leaves around £42 million in setup costs to recover after the first two seasons, adding to clubs’ longer-term bills.
A 2019 impact assessment, produced before legislation was finalised, estimated annual operating costs of £8–10.2 million for the first 10 years. The proposed £20.3 million total is roughly twice that estimate, but includes contributions towards setup costs and potential litigation as well as operations.
The Guardian reported on 23 October that the consultation puts setup costs at around £45 million, with recovery spread over 10 years. The proposal would collect only £3 million of that amount in the first two seasons:
| Season | Total levy | Included setup-cost repayment |
|---|---|---|
| 2027–28 | £20.3 million | £1 million |
| 2028–29 | £20.9 million | £2 million |
That schedule would leave around £42 million to recover over the following eight years. Those repayments would come on top of funding the regulator’s continuing operations; the first-year levy is not the full cost of establishing the watchdog.
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BBC Sport reports that the proposed operating budget would support 100 staff. The £20.3 million levy has three components:
| Purpose | Amount |
|---|---|
| Operating costs supporting 100 staff | £18.3 million |
| Reserve for potential litigation | £1 million |
| Contribution towards setup costs | £1 million |
| Total | £20.3 million |
The proposed £1 million litigation contribution would build a reserve for future legal costs. It is separate from setup-cost recovery, rather than payment of an already-established legal bill.
IFR chair David Kogan said the government would initially cover any costs the regulator incurred in possible legal action against Manchester City, then recover them from clubs, according to the Guardian. Whether the IFR takes such action depends on the outcome of City’s Premier League disciplinary case.
Kogan said action would be taken only if legal advice indicated it would succeed, which could allow costs to be recovered from the opposing side. This is a conditional funding arrangement for possible litigation, not a settled additional charge on clubs.
The Guardian reports that Manchester City were found guilty of breaching Premier League financial rules over nine seasons and have appealed the verdict. The IFR has the power to force owners to give up ownership of clubs in cases of serious wrongdoing.
The IFR says the largest contributions should come from clubs most able to afford them, with charges proportionate to revenue. The Guardian reports that Premier League clubs are expected to cover around 85% of the regulator’s total annual costs.
| Club category | Proposed charge |
|---|---|
| Highest-earning Premier League clubs | Up to £1.8 million |
| Most Premier League clubs | £600,000 |
| Championship clubs without parachute payments | Around £45,000 |
| League One clubs | Around £9,000 |
| League Two clubs | Around £6,000 |
| National League clubs | Around £600 |
Clubs participating in competitions run by football bodies UEFA and FIFA would pay more, as would clubs receiving Premier League parachute payments—payments made after relegation from the Premier League.
The IFR describes the proposed levy as proportionate and affordable. Chief executive Richard Monks said most clubs would pay around 0.1% of annual revenue. He said the earlier £10 million figure did not reflect current financial conditions or the task facing the regulator.
The proposed rates remain under consultation ahead of the licensing regime’s planned start in 2027–28, when regulated clubs must begin funding the IFR’s operations.
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