Chelsea, Liverpool and Manchester City face being banned from entering the Champions League if their debt levels remain, according to a report in the Daily Mail.
European football chiefs are apparently keen to ensure that clubs making huge losses are banned from European competition, meaning that many of England's top clubs would be at risk.
Official regulations are set to be published this summer, aimed at preventing the kind of financial crisis seen at Portsmouth recently. These regulations will also ban the kind of fiscal support offered to Chelsea by owner Roman Abramovich.
And whilst Manchester United - recently revealed to be a staggering £716 million in debt - could escape censure as they are still recording an operating profit at present, the likes of Liverpool and Chelsea, as well as Manchester City, would be at risk of expulsion from the lucrative Champions League tournament.
Chelsea have recently managed to reduce their losses from around £144m in 2006 to £44.4m last year, though their five-year plan to break even under Abramovich has yet to come to fruition, and they would struggle to meet UEFA's criteria at present.
Liverpool owners George Gillett and Tom Hicks are known to be seeking £100m of fresh investment, aimed at driving down the club's £237m debt, but as yet have been unsuccessful. News of £42m-per-year losses, and £36.5m-per-year interest repayments show the kind of financial peril the Anfield club is in.
UEFA's new legislation would come into force in time for the 2012/2013 season, giving clubs two years in which to sort their finances out