The Premier League have warned all 20 clubs they risk breaking rules on third-party influence if they sign players connected to an investment fund backed by Alan Hansen and former Football Association executive director David Davies.
The 'Hero Global Football Fund' aims to recruit young players from Africa, South America and the Far East and sell their registrations and image rights to clubs.
Investors would also make a profit from transfer fees when those players were sold.
The Premier League have studied the details of how a deal would work and have concluded clubs would be breaking the third-party rules that were tightened up following the Carlos Tevez saga at West Ham.
A Premier League spokesman said: ''We have been in contact with the Hero Fund to ascertain the nature of their business model and concluded from the information provided that this would be in breach of Rules L.34 and L.35 concerning third-party investment.
''As such we have written to all our member clubs to draw this matter to their attention.
''We have also made FIFA aware of our current position.''
The Hero Fund has been financed by Dubai banking group Emirates NBD, and has been registered as an offshore unit trust in Jersey.
It has also made a private investment into the Glenn Hoddle Academy, the academy set up by the former England manager in Spain for promising young players who have been released by their clubs.