Manchester City's football administator Brian Marwood believes the Premier League's 25-man rule could hinder the development of young players.
Managers will then draw their squads from this 25-man party, which can not be changed until the January transfer window.
The rules state that the squad must contain at least eight 'home-grown' players, with that term meaning they have spent three years at an English or Welsh club between the ages of 16 and 21.
The 25-man squad can be supplemented by any player who was under 21 years of age on January 1 this year.
But City's football administrator Marwood explained: "I think football needs to think very carefully about the 25-man squad.
"You have to keep your best under-21 players but ideally you'd like to get them loan experience.
"However, clubs will be frightened to do that if they lose players through injuries and suspensions.
"That will create problems. I'm not a big fan personally of how this is going to play out.
"For 18 to 21-year-olds we need to be better in terms of how we develop those players. Are we prohibiting them?"
Marwood believes criticism of City's big-spending is "laughable" and insists the Blues have a long-term plan.
Jerome Boateng, Aleksander Kolarov, Yaya Toure, David Silva, Mario Balotelli and James Milner have all arrived at Eastlands at a cost of approximately £120million this summer.
He explained: "A lot of people are misinformed, they form opinions without knowing the true facts.
"We are extremely fortunate to have owners who invest in the club, in all areas. It's for the future.
"Eighteen months ago we were fighting a relegation battle but our ambition is to be playing in the Champions League."
Sheikh Mansour took in a match for the first time since the Abu Dhabi Group took control of the club in Monday's 3-0 defeat of Liverpool.
And Marwood told BBC Radio Five Live: "Everyone appreciates what he's done for this club.
"We've seen (at other clubs) a lot of people come and very quickly go and leave a trail of destruction.
"Sheikh Mansour, (chairman Khaldoon) Al Mubarrak and those involved want to be in it for the long haul. They want to put a structure in place they can enjoy for a number of years."
