I mean it's kinda for the Nottingham Forests of the world where the owner could be splurging more than he can afford and who would know, and what would happen if he ran at a £200m loss and then bailed leaving the club in financial ruin. The issue is how the rules are a) favoring clubs with outrageous incomes massively so rather than at all limiting spending of the rich clubs to bring others closer to them are restricting everyone else, and b) incentivising the fire-sale of homegrown players by clubs which feels mad to me...
I think it does mean clubs are less likely to implode but it's bad for the league in it's current form. It either needs to be changed to mean clubs that have the cash can spend it (even if it meant extensive proof of funds required) while still incentivising growing clubs revenue etc as should happen, or somehow scaling back the completely bonkers inflated prices and wages of players to allow clubs to be more competitive. I have no idea how to do that though.
I also think something to make it more difficult for clubs to hoard players somehow could help? None of this will happen tho