Players and managers could be sacked for racism under proposals to be unveiled by the Government's Football Task Force today.
It also suggests referees should issue immediate red cards to any player making any racist comment on the field.
And the independent body also calls on the Government to make racist abuse by spectators at matches a criminal offence.
The report was being presented by the Task Force chairman David Mellor and has been applauded by Bradford City chief Geoffrey Richmond.
Richmond, who was embroiled in a bitter row with Mellor in January when the former MP asked a caller to his Radio 5 Live phone-in programme Six-O-Six if Chris Kamara's sacking had anything to do with his colour, said: "I know I am not Mr Mellor's greatest fan but we as a club actively work to stamp out racism.
"We will support wholeheartedly any proposals which help to do that. This is an issue we have worked hard on in recent years."
At the heart of the Task Force's conclusions is the call to the Professional Footballers' Association and League Managers' Association to push for the contracts of players and managers to include anti-racism pledges punishable by severe sanctions of fines or dismissal.
Mellor said: "We are saying all football clubs should have proper equal opportunities policies and set an example in employing a good range of people from a wide ethnic background.
"Any racist abuse on the pitch should lead to a red card and to exemplary disciplinary measures."
The Task Force also urges action to correct anomalies which mean, for example, that there are no top-flight Asian professional footballers even though the Asian community makes up 3.5per cent of the population and there is huge enthusiasm for the game among Asian children.
Another anomaly is the fact that non-whites make up 7.3 per cent of the population but just one per cent of Premier League crowds.
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