What I see wrong with it is that there is first money spent to get success - not vice versa. For me it has to be the other way around, even if this means a slower build-up. First you have success from sports, you earn money, you draw sponsors, you invest it again in wages and transfers, you have more success, earn more money, draw better sponsors, can invest more. Maybe you loose some players to better club on the way up - but you do not do that without a compensation you can wisely invest again.
That is exactly how it should be. Yes, there is small teams that do not have the environment to compete with bigger clubs because of where they are - but the success should be first related to good work on the sports and financial sector and not just depend on who has the richest sugardaddy...
The big influx of the money from other sources did not harm a big club like Manchester United so much - it harmed the other clubs much more who now were outpriced. It did not make the competition better (maybe only for the new sugardaddy clubs) - just different - but especially the expenses of all of the clubs rose.