The Scottish Football Association are discussing a salary cap where clubs would only be allowed to spend 65% of their income on wages, Gordon Smith has confirmed.
The model being considered follows the reforms in Ireland and would attempt to tackle the problems of clubs spending beyond their means, something UEFA president Michel Platini is also keen to combat.
"I have been talking internally about what happens in Ireland where clubs can only spend 65% of their income on wages," said SFA chief executive Smith said in an interview with FC Business magazine. "If we carry on like we are now, I'll be pushing for this and additional reforms in relation to the license to play in our leagues."
He added: "How can the SFA sit back and watch clubs destroy themselves? And there's a few close to doing that.
"Michel Platini has it right on one level that spending through debt is a form of cheating.
"But for us here in Scotland it's about ensuring that we retain the clubs we have and they have more money to help build the game as a whole.
"Our review on youth development would be pretty useless if there are less professional or league clubs for young Scottish players to play in, wouldn't it?"
Finance in Scottish football was complicated by Setanta's UK operation going out of business this summer and Clydesdale Bank Premier League clubs being forced to accept a vastly-reduced broadcast deal with Sky and ESPN.
Smith added: "It's not a good idea to be reliant on the TV money, clubs have to be more prudent."
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