is a distinct possibility in the future given that they owe nearly Stg700m in debts to the embattled banking sector.
http://news.bbc.co.uk/sport2/hi/football/7659077.stm
Uefa could ban debt-ridden clubs
By David Ornstein
BBC Sport at Stamford Bridge
Uefa general secretary David Taylor has warned that football clubs with heavy debts could be excluded from future European competitions.
Entry to the Champions League and Uefa Cup is subject to licences issued by European footballâs governing body.
And Taylor says clubs must address debts or face the âultimate sanctionâ.
âThere would be forms of communication, even warnings or reprimands, before one got to a situation of exclusion but it is absolutely possible,â Taylor said.
Taylor was speaking at the Leaders in Football conference at Stamford Bridge.
On Tuesday, Football Association chairman Lord Triesman estimated the total debt of English clubs to be about 3bn.
Lord Triesman said the Premier Leagueâs four top clubs - Manchester United, Liverpool, Arsenal and Chelsea - are believed to account for a third of that debt.
However, Chelsea say their âunique ownership structureâ means that monies owed are âinternal and in the form of interest free loans from the owner that have no repayment time frame attachedâ.
Taylor believes clubs with such huge debts are putting their future in jeopardy and feels they have to bring their finances under control.
âThere is concern about these numbers, particularly in an era of financial crisis,â Taylor told BBC Sport.
"Debt in itself is not necessarily a bad thing. Just because I have a mortgage it doesnât mean Iâm bankrupt. But the debt does have a requirement to be properly serviced.
"Clubs must work within all available means and they must not expose themselves to such an extent that the whole future of the club is jeopardised unless some white knight comes over the horizon with millions and millions of pounds.
âThat is a very dangerous and risky financial strategy for any organisation and as far as football is concerned we have to consider whether we should take further measures to regulate against that.â
Taylor says making Uefaâs licensing system more robust, and preventing some clubs from playing in Europe, could be one way of regulating their finances.
âWe are looking at strengthening the minimum financial criteria and other forms of self regulation that may impose greater standard on clubs that want to compete in European competitions and, beyond that, club football,â Taylor explained.
"A situation where a club would not be allowed to compete in Europe would arise if a club didnât obtain a licence from their national football association. 606: DEBATE
How big a problem is debt in football?
âClub licenses are awarded every year and itâs a requirement for clubs to have such licences before they compete in European competitions.â
Improving the financial stability of Europeâs leading clubs is one of Uefaâs aims but Taylor admits it may take time for plans to achieve that to be initiated.
âIt certainly wonât happen next season but weâve started with a working group to look at some of these issues,â he said.
âLet there be no doubt that weâre not sitting idly by, weâre looking at increasing these requirements at some stage in the future.â
Lord Triesman says the FA might consider enforcing a salary cap on Premier League clubs to help bring their debts under control.
âIn the current climate it could be that we have to work out (wage) restraints and what they might be,â Triesman added.
âA sensible form of (wage) restraint would make sense and it is not inconceivable. Itâs very hard to do anything unless all parties want to do it and everyone needs to want to do it. Preferably without being compelled.â
But Taylor believes it would be almost impossible for Uefa to implement a similar system across Europe.
âA wage cap would be a very difficult challenge in Europe given all the different tax regimes and everything else that goes around that,â he told BBC Sport.
âItâs one of a whole number of ideas that needs to be more seriously looked at than ever before but I think that would be one of the most challenging things to do.â
Chelsea chairman Bruce Buck told the BBC that he thought the level of debt in football requires âa proper debateâ.
âI donât think you can, just by definition, say âdebt is badâ,â Buck told BBC Radio 5 Live.
"Personally I donât think itâs bad. Companies big and small borrow money and it is an appropriate business tool and I think football clubs are also entitled to use that tool.
âDebt per se is not bad but itâs certainly has to be appropriate and reasonable in the circumstances.â
Crystal Palace owner Simon Jordan believes working out a clubâs indebtedness is not a straightforward matter.
âHow you judge the solvency of a clubâs balance sheet is very, very difficult because technically, most clubs could be perceived to be on the borders of being insolvent,â he said.
âTheir assets are players. Sometimes the value of those players on the balance sheet is zero but the next day they could be worth 50m.â