Sports minister Richard Caborn says a new inquiry will examine the possibility of introducing a wage cap in European football.
Caborn is keen to tackle some of the game's hottest topics
Caborn launched a review of European football in London on Wednesday.
He told BBC Radio Five Live: "There's a concensus, even among clubs, that there should be some control of how much income is paid in salaries.
"Television money and other income appears to be going straight to players and it has created some excesses."
The inquiry will be headed by Portugal's minister of sport, Jose Luis Arnaut and is backed by Caborn and Uefa chief executive Lars-Christer Olsen.
It was initiated by Caborn when Britain took on the presidency of the European Union last year.
The inquiry will examine a wide range of issues:
- How football can improve social inclusion and healthy lifestyles
- Club finances and the possibility of introducing salary caps
- Regulation of agents
- Ownership of clubs
- Distribution of revenue in football
- Protection against match fixing and corruption
- Protection of minors
A draft report is due to be produced by the inquiry in May and a full review will be sent to EU heads of state and Fifa before the end of the year.
This will set out regulations throughout Europe which will determine how football should be run.
Caborn said: "It's time for the game to take bold steps towards better governance and a Europe-wide solution is the only answer.
"It can't simply be a national solution because all the major leagues in Europe now operate closely together.
"People want to see action on certain issues, and we hope to address them."
Uefa chief executive Lars-Christer Olsson was also at the launch.
Olsson said: "This review will take a close and serious look at the problems and issues and deliver a report that allows us the opportunity to tackle them and make real headway.
"Out of the review we can define action for the future.
"Everyone realises we have to work with governments and not against them because many of our activities are governed by domestic legislation."