Karlheinz Rummenigge says Financial Fair Play rules need updating, or more clubs face being cut adrift by European football's elite.
The former Bayern Munich CEO was speaking after Lionel Messi secured a €35million a season move to Paris Saint-Germain.
Last season's Ligue 1 runners-up also acquired Gianluigi Donnarumma, Sergio Ramos and Georginio Wijnaldum on big wages this summer, while also splashing out €60million on Achraf Hakimi.
There have been widespread concerns that PSG are breaking Financial Fair Play regulations, something flatly denied by their president, Nasser Al-Khelaifi.
"Regarding the financial aspect, I will make it clear: we know the rules of Financial Fair Play and we will always follow the regulations.
"Before we do anything, we check with our commercial, financial and legal people.
"We have the capacity to sign him. If we sign Leo, it's because we can, otherwise we would not have done it."
Al-Khelaifi was also recently elected chairman of the European Club Association, in the wake of the Super League debacle.
Despite pleas of innocence, Rummenigge says FFP rules need to be updated to account for Gulf-funded mega clubs.
"We now have Financial Fairplay 2.0. But I emphasize: We need version 3.0, which contains a specific catalogue of penalties," the German legend told SportBild.
"Manchester City received a first-class acquittal in 2020 before the Court of Arbitration for Sport.
"That was the worst case for the statutes. You don't have to do anything major, but change a few small details."
Rummenigge was alluding to a CAS decision in July of 2020 which saw City escape a two-year European football ban.
They also had a €30million fine reduced to €10million, after a panel of judges ruled that City's breaches were either not established or time-barred.
City had been accused of overstating the amount it had received in sponsorship revenue in its accounts between 2012 and 2016.
Rummenigge had one suggestion for a new FFP framework.
"You can work with a percentage," he said, "For example, that only 50 percent of revenue may be invested in wages.
"This regulation could be individually based on the clubs, the magnitude would be variable from club to club.
"There must be clear regulations for everyone here, which can no longer be circumvented by any tricks or back doors."
Rummenigge has also been angered by the upper tier of Premier League clubs, who have been spending money this summer to beat the band.
Champions Manchester City paid Aston Villa €117million for Jack Grealish, Manchester United splashed out a combined €125million on Jadon Sancho and Raphael Varane, while Romelu Lukaku will join Chelsea for €115million.
"At the moment one has the impression that the English are marching on on the transfer market as if coronavirus never existed," Rummenigge claimed.
"This is possible for two reasons: On the one hand, there are three times as high TV revenues as in the Bundesliga.
"On the other hand, there are very rich ones owners in the background who can inject more money and possibly even use COVID-19 in their favour.
"We therefore need an international regulatory framework."