FOOTBALL is taking its first terrifying step towards the gallows, York City chairman Douglas Craig has warned.

With the European Commission expecting soccer's top brass to present an alternative to football's current transfer system by the end of this month, Craig admits he fears for the future of clubs like City.

Not only that, the City supremo fears massive changes to the transfer system could spell disaster for football at all levels and communities throughout the north of England.

Speaking to the Evening Press, Craig said: "When the Bosman came out, there was a significant number of people who said it would be a disaster. I didn't see it quite like that.

"I didn't like it and I think we should have fought it but we didn't, but I think what has come out now is much, much more serious.

"I would go as far as to say if there isn't a transfer system in place which is not significantly different from the existing one, if that doesn't continue then the future of smaller clubs is very bleak indeed.

"I think the whole of professional football will be turned on its head."

Craig's counterpart at Leeds United, Peter Ridsdale, has warned of "potential chaos" if the present system is scrapped while Manchester United manager Sir Alex Ferguson believes the game is "preparing to hang itself".

"It will be a disaster for all the local communities that have an affection and support for their home teams," added Craig.

"If you think about the North East - Grimsby are in danger, Hull are in danger, Lincoln are in danger, York are in danger, Darlington are in danger, Hartlepool are in danger. Apart from the Premier League clubs, in the North East and Humberside it would be a footballing desert.

"I have always been an optimistic person but if the commission's views hold sway then I'm afraid I am quite despondent about the future. The implications are potentially disastrous."