new report delivers ready-made solution to football’s problems

FAIR GAME today launches a ground-breaking report outlining a new solution to football’s finances that would stop the reckless spending that has endangered so many clubs in recent years.

The 89-page report, The Four Pot Solution: Redrawing Football’s Finances, is the result of 12 months of extensive research and analysis, and provides the football authorities with a ready-made solution to the problems within our national game.

The three main recommendations are:

• Introduce four-pot distribution model;

• Shrink parachute payments; and

• Rebalance divisional distribution.

Each year, men’s football benefits from a £3.2bn broadcasting deal. How this is distributed has been the centre of a stalemate between the Premier League and the English Football League for years.

While these two organisations are at an impasse, the number of clubs that are technically insolvent in the top four divisions has risen to 62%, average losses in every division have soared, and competitive balance in and between divisions is getting worse.

Clubs like Sheffield Wednesday, Reading, Morecambe, Southend, Bury and Macclesfield have all suffered in recent years.

For the first time, however, the new Independent Football Regulator (IFR) has oversight over the distribution of this money.

The Regulator has three core objectives: 

• Club financial soundness; 

• Systemic financial resilience; and 

• Protection of heritage.

The Regulator is now completing a thorough review of the state of the top five divisions of the English men’s professional game. The findings will form the basis of the first State of the Game Report, expected at the end of the year.

Crucially, the Football Governance Act explicitly states that the recommendations from that report must be addressed in any proposed new distribution deal.

Fair Game’s new report assesses the current problems in the game through the lens of the Regulator’s three objectives. 

The report shows how the £3.2bn broadcast deal can be used to address those problems and meet the IFR’s statutory duties.

It concludes that the divisional distribution needs tweaking, but more importantly the allocation must be split into four pots. 

• Pot 1: Core Funding – “The Lights-On Pot”
  Pays for the basics every club needs to stay open – including the seven essential roles the EFL requires and the infrastructure needed to keep stadiums safe and operational.

• Pot 2: Reward Funding – “The Don’t-Be-a-Numpty Pot”
  Clubs only receive this money if they behave responsibly – controlling wages, treating fans fairly, and demonstrating good governance. Reckless clubs simply don’t qualify.

• Pot 3: Ring-Fenced Funding – “The Future Pot”
  Money that can only be used for long-term, sustainable projects: stadium improvements, training ground upgrades, community facilities, and other investments that strengthen a club’s future. It cannot be spent on wages.

• Pot 4: Escrow – “The Safety-Net Pot”
  A mandatory reserve that protects clubs from sudden shocks – such as an owner walking away – and prevents overnight collapses.

Fair Game’s model shows how the IFR can: 

• Reduce wage inflation and owner dependency; 

• Improve competitive balance across the pyramid; 

• Protect clubs from insolvency; 

• Strengthen governance and reward responsible behaviour; and

• Support every division, including the National League system, for the first time.

It is a practical, evidence-driven blueprint that gives the Regulator the tools it needs to fulfil its mandate.

Niall Couper, CEO of Fair Game, said:

“For too long, English football has been built on hope, handouts and blind faith. The Four-Pot Solution gives the game a financial system that rewards responsibility, protects communities, and stops clubs gambling with their own futures. This is the moment to fix the foundations of our national game – and the Regulator now has both the power and the obligation to act.

“We hope this paper sparks a much-needed debate in football that leads to a realistic solution for the entire football community, one that works for every club at every level, and for every fan.”