The combined pre-tax losses of Premier League clubs climbed over 600% in the space of one year, according to a new report.
Deloitte's Annual Review of Football Finance found losses among top-flight sides rose from £135 million in the 2023-24 season to £948m in 2024-25.
This rise was attributed by Deloitte to transfer spending and the absence of significant profits from one-off sales. Net debt of Premier League clubs was up to £3.6 billion in 2024-25, compared to £3.5bn the season before, Deloitte found.
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Championship clubs' pre-tax losses rose 12% to £355m, with only three clubs reporting a pre-tax profit in 2024-25.
Tim Bridge, the lead partner in the Deloitte Sports Business Group, said: "The cumulative financial position and worsening club losses across all three English Football League divisions underline a continuing trend; one where external funding is now critical to liquidity in the vast majority of cases.
"Upcoming regulatory changes could support future improvements, but the focus must now shift to stronger commercialisation and sustainable growth, or a plan to bridge the gap to the Premier League to unlock the huge amount of value within football at all levels."
The Deloitte report highlighted the vast gap in revenue between the English top flight and the second tier, with Premier League sides raking in £6.8bn compared to £942m in the Championship, which represented a 2% decline in revenue compared to the previous season for second-tier clubs.
Discussions over a "New Deal" to create a more equitable split of television revenue between the Premier League and the EFL have stalled since 2024, though the Independent Football Regulator may have a role in speeding things along as it has "backstop" powers to impose a settlement if a deal cannot be agreed.
Deloitte found the European football market grew 13% overall to €40.2bn (£34.3bn) in 2024-25 -- the first season featuring UEFA's newly-expanded men's club competitions.
However, the financial services firm expects revenue to plateau and potentially fall in the years ahead, and Bridge warned that simply adding more fixtures to an already crowded calendar cannot be the answer.
Bridge added: "The expansion of UEFA and FIFA competitions has delivered financial benefits across Europe's 'big five' leagues, but football cannot rely on simply adding more content to deliver sustainable growth.