"If a club president spends and spends and lands his club in debt, that would be a crime," he said. "He would not even have to be guilty of corruption."
Dias said he was confident the investigation will provide sweeping changes in the chaotic national game.
"I'm confident this will provoke radical changes in Brazilian football," he said.
A second consequence, he predicted, would be that the Brazilian Football Confederation (CBF), currently an independent body, could become publicly run.
The inquiry in Brazil's Senate is one of two which is probing the country's so-called "national passion" following a year of scandals, domestic chaos and poor results at international level.
It is concentrating its investigations on club finances, the CBF and the actions of players' agents.
It wants to discover whether clubs are paying taxes and what happens to the money paid to them when top players are transferred abroad.
On Thursday, it is due to interrogate former national team Wanderley Luxemburgo, who has been accused by a former business associate of taking commissions on the sale of players.
A second investigation in the lower house is focusing on the relationship between the Brazilian national team and sponsors Nike. It wants to discover how much influence the sportswear giant has in the running of the team.
"Football moves millions of dollars and the nation loses because of bad administration in football," Dias said.
"It (the Brazilian Football Confederation) is a private entity but it is administering a matter which is of public interest. There is nothing which Brazilians get more passionate about than the national football team."
Reuters
Brazilian football club owners could be jailed for irresponsible behaviour, the congressional inquiry head Alvaro Dias has suggested.
