LOWER league clubs like York City could face uncertain futures amid fresh controversy over the transfer system.

A letter sent by FIFA to all Europe's major leagues reveals unexpected amendments to the new transfer regulations which were agreed at the end of last season.

Of particular concern to clubs like City, who invest much of their money in their highly esteemed youth programme in order to survive, will be the new FIFA directive that no compensation will be paid for developing young talent.

It means players like Russ Howarth, whose contract runs out at the end of this season, Lee Bullock and Christian Fox could be snapped up by a Premiership club for nothing when their current deals end.

Under the present agreement, if a player is out of contract but is under the age of 23 the buying club must pay compensation in recognition of the time spent nurturing his talent.

This had been one of the most important and hard-won principals of the original system.

City chairman Douglas Craig described the latest developments as a "shambles" and admitted any end to compensation payments for clubs who have groomed youngsters for stardom would have a "serious effect".

"I think it is very strange when the governing bodies in football have been having meetings and have just about reached agreement that everything should be thrown-up in the air again because of secret meetings between two individuals," said the City supremo.

It is believed FIFA decided to make changes after striking a deal with FIFPRO, the international players' union headed by Gordon Taylor, which had threatened legal action against the system agreed with the European Community earlier this year.

That system, agreed following months of complicated negotiations, was eventually ratified by FIFA's world congress in July.

However, it has not stopped FIFA going behind the back of the rest of the football community and changing crucial aspects of it.

FA officials are to hold urgent talks with FIFA general secretary Michel zen Ruffinen to try and head off any fresh transfer turmoil.

FIFA have also arranged several meetings around Europe this week and next to try and sort out the confusion.

Under the new FIFA principles, top players will also receive lighter punishment for unilaterally breaking contracts.

Originally, it had been agreed that players who walk out on their clubs should be suspended for between four and 12 months.

FIFA has changed that sanction without consultation to a maximum four-month ban, meaning top players will have virtual carte blanche to break their contracts.

"If the players have the right to break their contracts without compensation being paid to their clubs then the other side of that is clubs should be entitled to break their contracts without any compensation to the players," said Craig.

FIFA's shock announcement has staggered football's authorities.

Football League chief David Burns has already revealed his "grave concerns" about the effect FIFA's new system would have on the domestic game.

In particular, Burns believes the imposition of transfer windows could deny clubs suffering a short-term cash flow problem the remedy of selling an asset.

"By limiting clubs freedom to trade as they see fit, according to their own short-term demands, such a proposal could wreak havoc on the future of our club system," he said.

"How can we possibly allow a measure to be brought in that could ultimately bankrupt our football clubs whilst having no perceived benefits?"

Burns argues that not introducing a domestic transfer window could have additional benefits.

"Between the international transfer windows Premier League clubs would still be able to purchase from each other and from Football League clubs.

"This would clearly stimulate the domestic market and enable more young talent to join top-flight clubs.

"The net effect of this of course would be an increased flow of money from the top to the bottom of the professional game."

Updated: 09:39 Thursday, October 04, 2001