I'm in favour with that system as it works in Spain and clubs are a lot more sustainable now and getting financial healthier in Spain, despite the 2 covid seasons that affected badly. It made our league more competitive overall, but of course a club like Real can spend more than a promoted team, because of better revenue.
It can mean teams stuck to certain position, but teams with a good youth system/scouting have the chance to thrive with those rules. The problem in England is basically, owners cannot invest into clubs from their own money to make a smaller team grow due to FFP. Crystal Palace recently complained about that. That hinders them to grow and get closer to the top teams. If there are legal ways to do, I also expect that an owner is personally liable in a legal way in case he doesn't grant these payments.