Premier League's Financial Deal Impasse: A 'Death Sentence' for Clubs

Kogan pushes for Premier League, EFL financial agreement

Premier League, EFL urged to agree new financial deal to avoid 'death sentence' for relegated clubs. English football regulator David Kogan urges Premier League and EFL to break financial deal impasse amid relegation concerns.

Kogan warns parachute payments and revenue gap threaten Championship clubs' sustainability...

David Kogan, English football's new independent regulator, has warned that relegation can be a “death sentence” for clubs, emphasizing the need for the Premier League and Football League to reach a new agreement. Kogan's comments highlight the financial struggles clubs face when relegated.

The clock is ticking for the Premier League and EFL to break their impasse and agree on a fresh financial deal. Kogan stated that rolling over the existing 2019 agreement is “to no one's satisfaction,” urging the leagues to find a solution. 

English football's new regulator, David Kogan, warns relegation can be a “death sentence” for clubs due to the significant financial implications. He's urging the Premier League and Football League to break their impasse and agree on a new financial deal.

The existing 2019 agreement is set to expire, and Kogan says rolling it over isn't ideal for anyone. With the clock ticking, the leagues need to find a solution. A new deal could have major implications for clubs across the divisions. 

“The current system bakes in risk,” Kogan told the Financial Times Business of Football Summit in London on Thursday. “Multiple clubs throughout the pyramid have told us they would not be able to survive a month if their owner stopped funding.”

He added: “We know that players' wages have been rocketing in the Premier League, but it's also happening across the pyramid.

“Relegation, for many, is a near-death sentence. Clubs facing relegation can see their revenues cut by up to 80 percent if they fail to bounce back quickly, and the early analysis we've done suggests this is just as much of a problem between (fourth division) League Two and the (fifth-tier) National League as it is between the Premier League and the Championship.

“The whole pyramid is facing a series of cliff edges,” he insisted. “The clock is ticking.”

Live from the FT Business of Football Summit, we spoke with David Kogan, Chair of the Independent Football Regulator, who provided quick-fire insights on the game’s next chapter.#FTFootball pic.twitter.com/ml73cvl3nq

— Financial Times Live (@ftlive) February 26, 2026

Kogan mentioned that parachute payments aren't going away anytime soon. He's aware of the complexities surrounding these payments and their impact on the financial landscape of English football.

“Clearly there's going to be a discussion about that. What those discussions lead to, I'll tell you when they happen.”