Scottish Football Association chief executive Gordon Smith admitted yesterday that discussions have taken place over the introduction of a salary cap.

Finances in Scottish football have been hit by Setanta's UK operation going out of business recently.

The country's Premier League clubs have been forced to accept a significantly reduced television deal with Sky and ESPN and Smith is keen to ensure teams don't risk bankruptcy by over-spending.

In an interview, Smith said: "I have been talking internally about what happens in Ireland where clubs can only spend 65 percent of their income on wages.

"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. How can the SFA sit back and watch clubs destroy themselves? And there's a few close to doing that."

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