MATT Diskin today called on the Rugby Football League to educate clubs better to avoid another Bradford Bulls-style collapse.
Former hooker Diskin has been left "devastated" by the demise of his old club.
The RFL are currently assessing four bids to set up a new identity at Odsal after the Bulls were liquidated last week with debts of over £1million.
But Batley head coach Diskin believes the governing body also have to take their share of the blame for not having tighter controls in place to prevent clubs over-spending.
He told the T&A: "I think it's a warning bell for the RFL. It's easy for them to point the finger at mismanagement of the clubs – and that has happened – but at the same time, the RFL have passed these people as 'fit and proper persons'.
"They have the right to audit accounts, they can build the academy structures so if they are pumping that much money into clubs in the Championship and Super League, then they do need a more thorough process to prevent what's happening.
"If I'm going to give £500,000 in funding to somebody, I want to make sure it is used properly.
"If that means the RFL need to audit more regularly and put more things in place to help clubs with money management, then so be it.
"Whether it is that guidance or education, they need to do something because at the moment the system they have got isn't working – particularly at the lower clubs."
Diskin spent the final four years of his playing career at Odsal. He went on to coach the under-19s before being appointed as John Kear's successor with Batley.
The Bulldogs are hoping to stage a friendly against a 'Bradford select' side on Sunday, with half the gate receipts going towards players and staff who have not been paid.
Diskin said: "What's happening at Bradford at the moment is devastating. I think it has been coming. There have been a lot of whispers in the background.
"I was fortunate enough to make some great friends during my time at the club and I wouldn't wish this on anybody.
"It's a shame that some mismanagement over the last ten to 15 years has put the club in this position. It's the innocent people who get hurt in all this.
"One shining light from the club in the past couple of years has been the academy system with John Bastien and Leigh Beattie. They've done a great job and it would be a shame for all that to go to waste.
"But the game needs a Bradford team, whether it's a Bulls or Northern or whatever. It's part of the history. It's had some great people and been a great breeding ground – it can't leave the game."
The new Bradford side are set to begin alongside Batley in the Championship but with a 12-point penalty. The decision not to relegate them has brought a mixed response within the game but Diskin feels other second-tier clubs are in favour.
He said: "It's a tough one. Everyone who has been in the Championship want Bradford still in there.
"From a selfish point of view, you look at the fantastic fan-base and the crowd they bring. But then you look at the legalities of it and the RFL have got to be careful they don't set any kind of precedent.
"But it's not the players or staff's fault that they are in this position. It's the people who managed it above them, so it would be tough on them to have to drop a division."
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