Football League chief executive Shaun Harvey has voiced his concern after the footballers' union FIFPro urged FIFA to abolish its current transfer system.
FIFPro believes the current system treats some players as "slaves" and lodged a legal complaint against FIFA's r egulations on the Status and Transfer of Players (RSTP) with the European Commission.
But Harvey feels any change to the system will harm the majority of players and lead to a reduction of wages.
Harvey also believes it will affect the development of young players as clubs abandon their youth systems and academies with no prospect of selling on players for profit.
Harvey said: "Previous legal interventions on the transfer system at a European level, such as the Bosman ruling, have only served to significantly increase the wages paid to players at all levels of the game.
"Clubs now have to manage their players' registrations in a completely different way by making efforts to retain their services or transfer them before they are able to move for free when their contracts expire.
"Either way, the outcome is usually an increase in salary for players from their existing club or the club they join.
"Most Football League clubs lose money and have to make up any deficit through shareholding funding and player transfers.
"If FIFPro were to achieve their aim of abolishing the transfer system altogether it would only increase the financial burden on club owners with the only way to reduce that burden being to pay players less as they are comfortably the biggest cost faced by clubs.
"Across The Football League, 97% of turnover is currently being spent in this area with Championship clubs spending more on player wages than they earn in income.
"Therefore, while a victory for FIFPro might benefit a small number of players it would actually be to the detriment of the majority which cannot be consistent with the role of a trade union.
"Equally, there would be no incentive for clubs to continue investing in the development of young players. League clubs spend £60m per season on the young players of the future, if there was no prospect of a financial return it's doubtful that clubs would continue making this level of commitment.
"This would not be in the best interests of the game as a whole or for supporters who want to see their club fielding players they have developed themselves."
Source: PA
