RULE-bound European officials insist that football's transfer system must go. Either they have no idea what is at stake, or they place pettifogging bureaucracy above all else.

At the stroke of a pen they could wipe out smaller, poorer clubs such as York City. By outlawing transfer fees they eliminate a critical source of revenue for lower league teams. These businesses are often run on a shoestring; as our report tonight makes clear, many would struggle to recover from such a financial blow.

Clubs such as City cannot survive on gate receipts alone. Selling home-grown talent to the richer big boys is a short-term disappointment to the fans, but a long-term survival policy.

Without the prospect of future income from transfer fees, clubs would have no incentive to maintain their youth policy. City has an excellent record in bringing young players on. More than 100 youngsters are enrolled at its Centre of Excellence. Only a few will become professional players, but all benefit from the social and character-building skills they learn there.

If smaller clubs are unable to invest in youth talent, the wider game would suffer. That is a grim prospect in a week when England's performances have left fans despairing for the future.

The Premier League giants would also suffer as their big stars could walk out for nothing. Although it is hard to feel sorry for them, it will be the great British football fan who ultimately suffers.

It is ludicrous that a great football tradition, and many thousands of jobs, can be put at risk by Euro lawyers. They must give some ground in the next round of negotiations.