To prove their point in the book, Kuper and Szymanski talk about Newcastle United. This is without doubt one of the biggest English club (with good youth working, a big stadium and an excellent scouting aparatus). The last time Newcastle United were Champions was in 1927. Roman Abramovich and Mansour have nothing to do with the fact that Newcastle United never won a champions title between 1928 and 2000...
I agree that wages and success go hand in hand - but it's definitely getting worse every season (the wage inequality). Even in the 90's teams' wages were far closer together - Liverpool, United, Arsenal, and Chelsea (pre-Roman) all spent pretty similar amounts on wages.
And it's worth noting that Newcastle came very close to winning the league in that time. Now a team like Newcastle haven't a snowball's chance in hell of winning the league.
Teams should go through cycles. That's the way it works in almost every other team sport. You can only buy or develop so many players in a team, and they won't always work out, so it's boom bust. Newcastle could sign a Shearer and he'd be so good that they could shoot up the table. But then they could spend their whole transfer budget on Michael Owen and shoot right back down. I think that's how it should be.
But rampant inequality means that in most leagues there are 'dominant' teams that aren't as affected by those cycles (United, Arsenal, Bayern, Juve, La Liga 2). I think that's the failing of football. As we've discussed before, it's the fact that leagues become so stratified that make it necessary for City/Monaco/PSG/Chelsea to spend what they do.
In most sports you could add one or two truly class players to a team, and that would be enough to get them to win a championship. In football it costs a billion dollars!
Anyway, I know I need to get over the spend thing and try to just enjoy football. Chelsea should be wonderful to watch this season with the team they've assembled, as should City. In the end, fans want to watch good football, not worry about an income statement.