I agree that there is a form of control, but I would have thought one would have to control one's wage bill relative to income. I accept that the idea that outside investment implies loans implies not what we really want in the current economic climate, but "spend no more than you earn" means "you can't save up for a class player", and very much locks clubs into their categories. People who qualify for CL will quickly put a large distance between themselves and the rest; do we really want the EPL to be like La Liga, where 2 teams own pretty much all the good players in Spain?
Sounds like a good idea poorly implemented, though one could never accuse the FA of brilliance.