Geoffrey Richmond: Chairman (RossKinnaird/Allsport)

Taylor spoke out after speculation that the First Division club - placed into administration yesterday (Thursday) - could cancel the deals of high-earning players including Benito Carbone and Ashley Ward.

The Bantams have debts totalling almost £13million and have been left reeling by the collapse of ITV Digital and the failure of an expected transfer of Carbone to Premiership Middlesbrough.

Mike Moore, a spokesman for Kroll Buchler Phillips, who are handling the club's affairs, said it was likely that player contracts would be terminated as the club looks for a way to survive.

But Taylor has hit out at the claim, and said clubs would 'lose all credibility' if contracts were not honoured despite financial hardship.

He added: 'A number of clubs have gone into administration, and what we expect is that all contracts are honoured.

'If they are not, then football will lose all credibility. The game here will become like a Banana Republic.'

Taylor is to hold talks with the Bradford's shell-shocked players next week, and stressed: 'What I will pressing home is the fact that you cannot just tear up players' contracts.'

Football League chiefs are holding a meeting today, with Bradford's problems likely to be high on the agenda.

Taylor said: 'I am waiting to see what might develop from that meeting concerning Bradford.'

The Yorkshire club were relegated from the Premiership last season, but could only manage a disappointing 15th-placed finish this time around.

Chairman Geoffrey Richmond admitted that a spending spree before that relegation season - which saw Stan Collymore and Carbone among the big-name players to arrive at Valley Parade - had backfired.

An emotional Richmond admitted: 'I will never, ever, forgive myself for spending the money we did.

'Looking back now, it was six weeks of madness and I hold my hands up. But I couldn't be expected to know we would have an ITV Digital situation that would take income away that was due and the effect it would have on the transfer market.

'Every club is laying off players. There isn't a prayer of selling a player, there isn't a prayer of giving away a player.'

But he vowed: 'If we keep the faith we will go forward. The sun will shine again. I'm resilient, I do bounce back - as will Bradford City.'