Manchester City were found guilty of the vast majority of the 115 charges brought against them by the Premier League, relating to alleged financial rule breaches over a nine-year period.
The club are expected to appeal, while sanctions have yet to be announced. Premier League clubs are also seeking legal advice over potential compensation claims.
Purslow believes the financial consequences for other clubs could be significant if claims are pursued across the entire period covered by the case.
“If you look at every single season - the nine seasons which we now know Manchester City breached rules - then all of their 19 Premier League rivals in that season, to differing extents, suffered easy-to-compute loss,” Purslow told Radio 4's Today programme.
He pointed to clubs missing out on European qualification or suffering relegation as examples of potential losses.
“If you add all those claims up, over nine years, and that's just in the Premier League, you can see that the potential here for this to spiral out of control is huge.”
Four clubs have already submitted protective claims, according to football law expert Paul Gilroy KC, reserving the right to seek compensation if City are ultimately found guilty.
Purslow called for a comprehensive solution between Manchester City and the football authorities to prevent years of further legal uncertainty.
“I really hope that common sense prevails here and that there is a comprehensive solution between the authorities and Manchester City that looks at all these issues and tries to draw a line in the sand.”
Gilroy described the case as a “seismic moment for world football”, with the potential consequences extending beyond any punishment imposed directly on City.