"Unless there is sweeping change then I predict a genuine financial disaster," Izco said in e-mailed responses.
"There has been a great deal of excess in building up squads, clubs have not kept their spending in check and the situation has spiralled out of control."
The comments by Izco, president of Pamplona-based Osasuna since 2002, come as many small and mid-sized clubs face the real prospect of bankruptcy and are struggling to cope with surging wage and transfer costs amid Spain's worst recession in at least half a century.
"The world of football is not immune to the general economic situation," Izco said.
"We have to have a period of adjustment to the new conditions," he added. "Spending must be controlled and brought in line with revenue."
The majority of Spain's professional clubs are run as so-called sociedades anonimas deportivas (SADs), or sporting limited companies.
"As a model, the SAD is sound but it has not worked for the clubs and has not achieved the objective it was meant to," he said. "Systems of financial safeguards must be established which genuinely control football and make it function properly."
"In our case, we can count on substantial assets and we have various activities ongoing that will help us exploit them for profit," he said.
"The future of the club is not under threat but we do see the need to exploit these assets for profit.
"We are not
