Mr Watkins, a member of the Premier League legal advisory group, said the challenge for Uefa would be when it was faced at some stage with potentially excluding a big club from one of its competitions.

BBC: Premier League clubs 'can meet Uefa financial rules'

Whether Real can convert this into a challenge to the recent English domination of the UEFA Champions League on the pitch remains to be seen.

CNN: Premier League stricken with debt?

The Uefa sanctioned competition, which will be re-named The International Challenge Trophy, is due to get under way in November 2007.

BBC: SPORT | Football | Non League | Euro Trophy event to be expanded