Portsmouth chairman Michael Eisner (left) has warned a disaster is looming for the Championship with Sheffield Wednesday and Leicester City in particular suffering financial turmoil

Championship finances near breaking point

The EFL Championship is facing growing fears of financial collapse after clubs recorded staggering losses of more than £3 billion over the past decade.

With only three clubs reporting a profit in the 2024-25 season, the financial model of England’s second tier is increasingly being questioned, with warnings that the system is unsustainable.

Michael Eisner described the situation starkly:

“No club can survive long-term in this system… catastrophe will happen.”

A Decade of Heavy Losses

The numbers paint a worrying picture:

£3bn+ total losses in 10 years
£317m losses already confirmed for 2024-25
Projected losses rising toward £346m
£4.3bn lost since 2006

According to finance expert Kieran Maguire, the issue is structural:

“Wage bills often exceed revenue before basic costs are even considered.”

This means many clubs are operating at a loss before even accounting for day-to-day expenses.

The Promotion Gamble

Bristol City, owned by Steve Lansdown, have lost £111m in the past five years - and £218m since he became chairman and majority shareholder in 2002 — Bristol City, owned by Steve Lansdown, have lost £111m in the past five years – and £218m since he became chairman and majority shareholder in 2002

The financial imbalance between divisions is a key driver.

Premier League TV revenue: ~£106m+
Championship revenue: ~£12m

This massive gap pushes clubs to overspend in pursuit of promotion.

Teams like Leicester City (£305.7m losses), Nottingham Forest, and Leeds United highlight how even promotion-chasing sides can suffer heavy financial damage.

Maguire compares ownership spending to buying a lottery ticket:

Clubs gamble millions for a small chance at Premier League riches.

Reliance on Wealthy Owners

Many clubs survive only because of owner funding.

Loans often written off (e.g. Stoke City £90m)
Continuous cash injections required
No realistic expectation of repayment

This creates a fragile system dependent on wealthy backers.

If those owners step away, clubs can quickly collapse — sometimes within weeks.

Warning Signs Already Visible

Leicester, who have been relegated from the Premier League twice since 2020, have spent £116m more than any other club to play in the Championship in that time

Recent cases show the risks are real:

Derby County entered administration in 2021
Sheffield Wednesday followed in 2025
Other affected clubs include Bolton Wanderers, Bury, and Wigan Athletic

These collapses often lead to:

Points deductions
Forced relegations
Financial restructuring

Is Reform the Only Solution?

There is growing agreement that change is needed:

Wage control measures
Stronger financial regulation
Sustainable spending models

Without reform, the gap between the Premier League and the Championship could widen further — risking long-term damage to the football pyramid.

Big Picture

The Championship remains one of the most competitive leagues in the world — but financially, it is increasingly unstable.

As Maguire warns:

“This is no way to run a business.”

Unless structural changes are introduced, the league could be heading toward a tipping point where financial reality finally catches up with ambition.