You only have that competitive edge in league 1. Lets say there was a cap of 10k in the championship wouldn't you want that?
I personally think this is all tied in with Football Fair Play rules not being fit for purpose. Bury, with the gates they were getting shouldn't have been able to pay their players that amount under FFP but the rules are so poor that nothing stops a chairman gambling on the success of their team at the moment.
I can't remember where this idea came from but I think it was my brother who said that when a player is signed by a club the players wages should be guaranteed by an insurance policy. If you are a well run club with assets and low debts (not sure how you would work out this given the smoke and mirrors sometimes) then the insurance policy would be cheap for the club, because the risk of financial difficulties would be low. If the risk is high you would have to pay a higher premium. Therefore the gamble you make as a chairman would cost you money up front in terms of a policy that guarantees the wages of the players and should mean that the club can continue playing football even if behind the scenes things are falling apart. I am not sure if this would work or not, it was just another idea, but might have stopped the Bury situation from happening.