Isn't the exact opposite true? With it, the biggest clubs with the biggest fan bases, stadiums and sponsorship; deals can out spend any of the clubs below them. These 2nd tier clubs can't compete financially as they can't match the revenue streams of the elite clubs until they become one themselves.
You only have to look at Man U, they have had a disastrous time in the transfer market, but to a degree have a protected revenue stream. Teams that don’t have that massive income can’t use investment to try and catch up. As a result United have been allowed to consolidate and repair the squad. If a team like Leicester for example struggle in the transfer market and recruit poorly, it will be very difficult for them to recover and they bomb out of the league - see Bournemouth.
It’s stacked against smaller clubs and fundamentally it’s unfair and in business would be a monopoly.
FFP if applied correctly to the letter of the law means the biggest clubs in any given league generate more income every year and can outspend the chasing pack every year.
I'm pretty sure this is what Liverpool, Man U, Bayern, Juventus, Real and Barca etc. would actually want.
It simply maintains the status quo, and prevents any newcomer to the top table challenging them.
And it can never work in the Championship because it isn't applied in most cases, if you go up breaking FFP the EFL are powerless to to do anything to you. Additionally the relegated teams parachute payments mean those teams can blow anyone else out of the water financially for a couple of years.
The whole thing is an unfair, unenforceable mess.
It should just be dropped with very strict controls on what the money spent is secured against brought in. If you want to spend £500 million on a team and you have the money then so be it. Gibbo did it with us on a much smaller scale in the nineties and we weren't up in arms.
As long as the club is protected as part of the local community and the losses are wholly absorbed by the owner, he's taking a risk with his money and his assets not the clubs then I'm fine with it.