The Championship is facing a financial 'catastrophe' due to significant losses and alarming debt levels. The cumulative debt of Championship clubs has reached alarming levels, with some teams operating on shoestring budgets. The financial woes of Championship clubs are a result of a combination of factors, including poor decision-making, inadequate revenue streams, and increased costs. The COVID-19 pandemic has had a significant impact on Championship clubs, resulting in reduced revenue due to empty stadiums and lost ticket sales. The Championship's financial crisis raises serious questions about the long-term viability of the competition.