Under plans being drawn up by UEFA three premier league teams could face exclusion from the Champions League – on the grounds that they hold excessive debt.

The European game’s governing body has set up a working group to discuss how to extend its licensing system and restrict the levels of debt that clubs are permitted to operate with. The financial stipulations are currently limited to bans on clubs who have outstanding debts on transfer payments. It also states that staff should be paid on time.

Proposals being drawn up would see the system delve far deeper into the financial workings of clubs. “The ultimate sanction is not to be in our competitions” Debts fixed against assets, for stadium building, are considered more acceptable than those run up in the acquisition of players or for takeovers. This would affect clubs such as last season’s Champions League finalists, United and Chelsea, and one of the semi-finalists, Liverpool, unless they significantly reduced their debts.

“It won’t happen this year, it won’t happen next year but, yes, that could happen in years to come,” a spokesman said. “Some of us believe it shouldn’t be an absolutely free market and we are in favour of controlled regulation. An increasing number of people in football believe we have to do more.” There are some excellent examples of those who support the system, and Arsène Wenger is one of the strongest supporters of the need to do more.”