Euro ban warning for clubs in debt

England's top clubs could face exclusion from European competition if they fail to meet tougher new licensing laws being considered by UEFA to curb excessive debts.

David Taylor, general secretary of the European governing body, said that a working group will meet at their headquarters on Monday in Switzerland to discuss the proposal.

Chelsea and Manchester United will be particularly concerned by the development. Roman Abramovich has given the Blues more than £500million, while the champions, who are owned by the American-based Glazer family, have debts of about £600m.

Taylor said: "Exclusion would arise if clubs did not get a UEFA licence, and the criteria could be made tougher. If they did not get a licence, they would not compete in European competitions.

"We are not sitting idly by - we are looking at the areas for potential increases. The criteria and requirements might need to be looked at more closely in terms of financial regulation."

Abramovich does not expect to recoup his outlay at Chelsea, who want to become self-sufficient.

Yet, they still announced losses of £74m in the financial year to the end of June 2007 and Taylor wants this to end.

He added: "It is up to each club to manage their own affairs."

UEFA issue an annual licence to clubs in May and the 32 teams competing in the Champions League could be the first to have to adhere to the new criteria.

Speaking at the Leaders In Football Summit for prominent figures within the game, Taylor added: "There would be forms of communication, even warnings, even reprimands before one would ever get to a situation of exclusion, but it is absolutely possible."