The highest-earning Premier League clubs will pay up to £1.8million towards the cost of the independent football regulator (IFR) from next summer -- but could face paying much higher amounts in the years ahead.
The IFR has opened a consultation proposal on the levy needed to fund it, and has projected a total cost to the 116 clubs in the top five divisions of English football of £20.3m in the first year of its licensing regime -- 2027-28 -- rising to £20.9m in 2028-29.
That figure is double the government's original estimate of £10m a year being required for the IFR.
It is thought Premier League clubs will cover around 85% of the total annual IFR costs, though the amount each club repays will be designed to be proportionate to their revenues.
The highest-earning clubs will pay up to £1.8m in year one, the IFR said, but it added that most Premier League teams would pay £600,000.
However, costs could rise significantly in the future, with the consultation document confirming that set-up costs for the regulator ran to around £45m.
Only £1m of that is being recovered in 2027-28, and £2m the year after, leaving approximately £42m to be recovered over the next eight years.
A further £1m of the 2027-28 levy is a contribution to building up reserves for any future litigation costs.
IFR chair David Kogan confirmed last week that clubs would ultimately foot the bill for any legal action the IFR may be involved in against Manchester City, depending on the outcome of its Premier League disciplinary case, which could be a significant amount.
He said that any legal costs incurred by the IFR in that matter would in the first instance be covered by the government and then recovered from clubs, but stressed that legal action would only be instigated if the advice was that it would succeed, meaning costs could be recovered from the other side.
City have been found guilty of breaching Premier League financial rules over a nine-season period, but have appealed against the verdict. The IFR has the power to force owners to divest from clubs in cases of serious wrongdoing.
- Carrick refuses to rule out dropping Bruno Fernandes for Man United clash with Bournemouth
- Liverpool's Andoni Iraola urges Rio Ngumoha not to be distracted by 'outside noise'
- Man United will be 'angry, intense,' Marco Rose warns Bournemouth
The IFR's media release compared its running costs with the Premier League's administration costs of more than £200m for the 2024-25 season, a comparison is understood to have caused surprise within the top flight.
The Premier League has more than three times the IFR's staff, generates more than £4billion annually, and its administration costs include all operating expenses plus investments in other areas aimed to help the league grow further, such as the set-up of new production studios. It also includes its legal costs related to the City case and others.
The IFR said Championship clubs not in receipt of parachute payments would pay around £45,000 for 2027-28, with clubs in Leagues One and Two paying around £9,000 and £6,000 each. National League clubs would pay around £600 a year each, the IFR said.
IFR chief executive Richard Monks said: "I am aware of the £10m figure [originally estimated by government] and to be clear that is not a number we believe reflects either the current financial reality or the task ahead of us.
"The levy we are proposing today represents a fair and balanced approach and will ensure that most clubs pay around 0.1% of their annual revenues.
"We are confident football will see this is a relatively modest investment to help achieve a more sustainable ecosystem which will provide peace of mind for fans, clubs and the communities they serve."