Championship losses reach £22m per club in regulator’s draft report

Average Championship club losses have risen to £22 million, according to a new draft report from the Independent Football Regulator. The figure puts the financial pressures in the division containing Cardiff City, Swansea City and Wrexham under scrutiny as football authorities seek changes to how money moves through the pyramid. The regulator’s State of the Game report, published on Tuesday 13 October, says 94% of clubs across the top five English leagues were loss-making in 2025/26. Its figures for that season combine actual and forecast data submitted by clubs to their competition organisers.

Losses rise faster lower down the pyramid

The report puts average Championship losses at £22 million in 2025/26, equivalent to around 59% of revenue. Average losses had remained between £11 million and £13 million until 2024/25. League One losses rose from £2.4 million in 2021/22 to £7.5 million in 2025/26. In League Two, the division containing Newport County, they increased from £600,000 to £2.7 million over the same period. These are league averages, not figures for any individual Welsh club. Across the EFL and National League, 17 clubs had non-player costs greater than their total revenues. The regulator says those clubs would have made losses even without paying players.

Funding reform is still being sought

The IFR says it has worked with the Premier League and EFL as they seek a new revenue distribution arrangement. It prefers an agreement between the competition organisers. The report calls for reform that eases the financial impact of relegation and the incentives created by parachute payments, while avoiding another surge in spending. It also calls for clubs to strengthen cash reserves, contingency planning, governance and engagement with supporters. If the leagues cannot agree, a competition organiser may apply to trigger the statutory backstop. The regulator would first have to decide whether the conditions are met, followed by mediation and, if necessary, an order on revenue distribution. This report does not confirm a new payment allocation for Cardiff, Swansea, Wrexham or Newport.

A draft open to challenge

Comments on the draft are due by 8 December 2026, with the final report expected in early 2027. The regulator has drawn on information gathered using statutory powers, alongside engagement with clubs, leagues, supporters and investors. The figures describe risks across the football system. They should not be read as a finding that a particular Welsh club is insolvent or about to run out of cash.