Despite UEFA's upcoming financial fair play regulations, Morgan wants the Premier League to go a step further and ensure that no club spends more than 50 per cent of their turnover on wages.
His club, Wolves, are one of the few sides in the division that turn a profit, with others losing millions of pounds a year, albeit bankrolled by billionaire owners.
Many, though, do not have the benefits of a generous backer and Morgan feels urgent action needs to be taken to prevent those clubs from falling into serious financial turmoil.
"If there was a wage cap of 50 per cent of turnover, it would be good for other people who were perhaps finding it more difficult to stick to the limits," Morgan told the Express and Star.
"Wages are the biggest single cost to football and there are clubs in the Premier League even aside from Manchester City, such as mid-ranking or lower mid-ranking clubs that run into 60, 70 and 80 per cent of their turnover.
"That isn't sustainable. What are these clubs thinking of? If clubs want to avoid getting into serious financial trouble, they must get wages under control."
Source: Team Talk
Source: Team Talk