Scarsella, who was heavily involved in the birth of the Reds prior to the A-League kicking off in 2005, believes the current status of the domestic competition is worrying and believes the first step to be taken is to reduce the club's wage bills.
"From a distance, my view is the players are getting way, way overpaid compared with what the standard they're playing at," Scarsella, the London-based chief executive of UK Power Networks, told the Adelaide Advertiser.
"With the A-League they have to cut the cloth to suit. Reduce players' wages to the levels that the clubs become viable.
"That's the only way I think the league will survive . . . otherwise it's not going to survive.
"You've got to look for what the clubs earn. They must run it as a business."
He also feels that clubs should use resources they have in the places they are based to help with the viability of the league.
"Adelaide United should be run as a South Australian club," he added.
"And you have got to have some South Australian players.
"You have to have a close association with the clubs, you've got to have a close association with the people that have been involved with the game for a long time.
"It's no good saying 'We want to be associated with the clubs' but then when it comes to giving the clubs anything you want to take but not give."