Shrewsbury Town manager Paul Simpson has warned that a clutch of clubs could face administration “within the next few months” as the economic downturn filters through football.

Talk of Manchester City’s £100m bid to bring Brazilian magician Kaka to the Premier League has dominated the news this week – but Simpson believes that a host of lower league clubs could be heading for financial meltdown before the end of the season.

“I don’t know where it all stops to be honest,” he said. “I think the next few months could be a massive time for football, without a doubt.

“A lot of people are going to have to get their own house in order and take stock of what they’re doing – you can’t keep chasing this dream all the time and throwing money at it.

“There is a risk that a lot of clubs could go into administration over the next few months, and we’ve got to make sure that we’re not one of them

“We’ve got to be very careful what we do – there is a credit crunch going on and everybody is suffering.

“It’s no good going out and getting players who are going to cost us money but are not going to add to our squad.

“We are doing things the right way. It’s the only way you can do things.

“We’re running the business properly but we’re still having a go to try and achieve something as well.”

Simpson splashed out £170,000 on talisman striker Grant Holt in the summer but has since kept the purse strings tight, opting instead to bring in no fewer than seven loanees this season.

The Town chief is still on the look out to add to his squad ahead of the final promotion push, but it has to be the right man.

He added: “I still think that we might have to add another striker and a midfielder to what we already have, but wanting something and actually being able to get it are two very different things.

“Until the right player comes up, we won’t just be bringing in people for the sake of it.”

Any move for midfielder Joss Labadie, who was on at Town for just one game earlier this month, has been thwarted as the West Brom youngster has been ruled out for the rest of the season with a foot injury.