English football regulator to require EFL clubs to hold cash reserves based on financial risk level
England's football regulator is introducing a rule requiring EFL clubs to maintain cash reserves scaled to their assessed financial risk level, according to the report. Clubs categorized as high risk must hold funds equal to five months of operating losses, while those deemed medium risk must hold the equivalent of three months. The measure appears aimed at improving financial stability across the EFL.
Clubs deemed high risk will need a fund equivalent to five months of their operating losses, while medium-risk clubs will need three months.
Why it matters
For brands: Sponsors and commercial partners of EFL clubs should be aware that clubs face new liquidity requirements that could affect financial planning and partnership structures.
For coaches: Coaches and staff at EFL clubs may find that the reserve requirements influence club spending decisions, including on wages and recruitment.
Read the full story at The Athletic
Sources
- The Athletic: EFL clubs forced to hold cash reserves in line with financial risk level by football regulator