Clubs may need to hold £10m in liquid assets to satisfy Independent Football Regulator

The Independent Football Regulator (IFR) may enforce clubs to hold over £10m in easily accessible funds to meet its risk reduction criteria, a move aimed at improving financial stability. Clubs deemed higher risk will need to demonstrate reserves equivalent to five months of operating losses, a figure that could reach into the eight-figure range for certain teams.

This proposal is part of the IFR's consultation process, following a draft State of the Game report that revealed 94% of professional clubs are currently operating at a loss, with a third reliant on owner contributions for survival. IFR CEO Richard Monks stated that the report highlighted the urgent need for action to make clubs more resilient against financial shocks.

Premier League clubs will have a three-year window, beginning in 2030, to build their cash reserves to meet the licensing conditions. While the requirements will be less stringent for these clubs, they will still be assessed individually. For clubs below the Premier League, all are expected to hold liquid assets equal to their monthly wage bill as a minimum.

High-risk clubs may be required to hold five months' worth of cash reserves, with the IFR's initial risk assessment set to take place in 2027, with potential adjustments depending on the clubs' performance over the subsequent three years. The majority of these liquid assets must be in cash, government bonds, or money market funds, with up to a third allowed to be in player transfer receivables.

Failure to meet these liquidity requirements could result in stricter license conditions for the clubs.