World football's governing body have made the proposals under the threat of legal action from the European Commission. Under the proposals - yet to be accepted by the EC - players would be allowed freedom of movement like in any other profession from the age of 24.
Talking at his pre-Everton press conference at Spurs Lodge, the Spurs boss commented: "A lot of people are coming out with a lot of statements and nobody knows what route anyone is going down yet. There is a lot of speculation.
"I only think there is a worse scenario - it will be only beneficial for the top players and it may not help the majority of players. Then again, clubs can also turn around and give them notice. They will have the same right as the players to cancel a contract. It's still all speculation though. No-one knows how long that notice will be - will it be a month, two months, three, six?
"All we can say it is that it is not good for the game. I think it could leave the game in chaos. But I don't want to get into any more detail until we know more. It's all theories at the moment and when we get some more concrete guidelines we can all have a better opinion on it all."
Meanwhile, Graham was delighted to report a clean bill of health from a host of players on international duty at the weekend.
Darren Anderton, Sol Campbell, Neil Sullivan, Sergei Rebrov, Oyvind Leonhardsen, Steffen Iversen, Stephen Carr, Gary Doherty and Simon Davies all reported back for training on Sunday unscathed.
George Graham reckons FIFA's proposals to abolish the transfer system could cause chaos in football.