Reading FC supporters' group STAR has welcomed the Independent Football Regulator's landmark State of the Game report, describing it as further evidence that English football's financial model is in need of significant reform.

The report paints a concerning picture of the game's finances, highlighting that 94 per cent of clubs are loss-making while 60 per cent are technically insolvent.

In response, STAR said Reading supporters are acutely aware of the risks posed by football's reliance on wealthy owners, following the club's well-documented financial troubles under former owner Dai Yongge.

In a statement to The Reading Chronicle, STAR said: "We welcome the IFR's landmark State of the Game report, which exposes just how dysfunctional the economics of English football have become.

"The word 'state' is apt. Ninety-four per cent of clubs are loss-making, 60 per cent are technically insolvent and the over-reliance on owner funding means several teams, and Reading fans know this better than most, are one owner losing interest away from severe financial distress."

Yuan Yang, the Labour MP for Earley and Woodley with members of the Sell Before we Dai campaign at the Department for Culture, Media and Sport. (Image: Image: Office of Yuan Yang MP)

Described by the regulator as the most comprehensive financial analysis of English football ever produced, the report found that two-thirds of clubs would be unable to survive for more than 90 days without fresh injections of owner funding, while 60 per cent of EFL and National League clubs are technically insolvent.

Speaking after the report's publication, Yang said: "The findings are pretty shocking and they mean a lot to me as a Reading Football Club MP because it shows that the crisis that happened at Reading could so easily happen at so many football clubs across the country."

She added: "Almost all football clubs are either highly leveraged and dependent on debt or dependent on their owner's goodwill.

"But what happens when those owners get bored and stop looking after the club? We found out the answer to that question the hard way at Reading."

(Image: Jason Pix)

For Reading supporters, those warnings are likely to resonate strongly after years of points deductions, transfer embargoes, winding-up threats and financial uncertainty during Dai Yongge's ownership before the club's eventual takeover by Rob Couhig.

Despite the bleak findings, STAR argued that English football remains a hugely successful industry capable of sustaining itself if reforms are implemented.

The supporters' group pointed to the sport's strong commercial appeal, with more than £9 billion generated across the game each year through broadcasting, sponsorship and matchday revenues.

"The money is there, the game is not gone, but corrective measures are required," STAR added.

The group welcomed recommendations that appear to focus on cost controls but believes a broader cultural shift is needed if clubs are to achieve long-term financial sustainability.

Rather than relying solely on punishments for owners or clubs that breach regulations, STAR says football should look at ways of rewarding good financial governance.

The statement referenced Reading's experiences under Dai Yongge and Manchester City's ongoing financial rule proceedings as examples of the difficulties involved in policing bad practice after the event.

STAR added: "We should start exploring how best financial practice can be incentivised and rewarded.

"The football industry uniquely runs on results and winning. For the game to change for good, sustainability must be treated as a triumph and a title to win, not just a box to tick."

The Independent Football Regulator has launched a consultation on the future of the game, with Yang urging Reading supporters to take part and help shape reforms designed to prevent other clubs from experiencing the hardships endured by the Royals.