Yep, the EPL will hoover the talents but Chelsea are taking it to an extreme, and overall with both limited sporting success and selling at a loss overall. That's not counting wages and running costs.
Still room for Barcelona/Madrid and Italians to be competitive on talents though as wages are generally low and transfer fees are generally modest. Milan clubs are somewhat (and Italian clubs in general, possibly thanks to their Beckham law and laxer salary cap rules) having a resurgence in the market somewhat.
In Barcelona case, just need to weather this salary cap storm and get finances in order so can make those 10/20m strategic moves without blinking.
What usually happens (take Meriton buying Valencia) is they will buy the club with a loan from their country, say 200m from Meriton on HK, and have the club pay back this loan to themselves on higher interest terms than the holding company are paying to their bank/investors. Free money basically.
So a club like Chelsea are taking this to the extreme and propping it up with their PL base income streams (TV rights, TIcketing, etc) while paying themselves back on interest, letting the club accumilate the burden.
Of course in the PL and certainly a London based club, you can push this model to the limit.
Probably with their eye on a buyout down the road.