Bayern failed to get past the first group stage last season and have been hit hard by the financial shortfall that creates.
Said Hoeness, commercial manager, speaking to the German press: "As long a Bayern keep winning and remain financially healthy, the players will continue to be well paid.
"But if we have another year like last year when we left the Champions League after the first round, then we will have new contracts with salary reductions from 30 to 40 percent."
Uli Hoeness, commercial chief of German soccer giants Bayern Munich has warned failure to progress in the Champions League could force it to slash wage costs by up to 40 percent.
