FIFA general secretary Jerome Valcke believes other clubs need to be mindful of the situation at Portsmouth in order to avoid making the same mistakes.
Pompey will enter administration on Friday if they cannot find a buyer after being threatened with a winding-up order.
They will be docked nine points if they go into administration which would almost guarantee relegation from the Premier League.
Valcke feels the crisis at Fratton Park should stand as a warning to the rest of football.
He said: “It is the richest league in the world so this is strange. If you talked about another league I would say fair enough, but the richest league in the world – what’s the reason?
“It’s because the club was badly managed, they ran it to have a chance of winning titles by buying too expensive players and just getting more in debt every day.”
The Portsmouth situation hasz been cited by UEFA as a reason for the game to back their proposals clubs should only be able to spend what they earn.
According to a new UEFA report, the total debt of the Premier League clubs is £3.4billion, 56% of the total across Europe.