How an earth is that going to increase competition in football? That was the old model that saw the same handful of clubs dominate their domestic leagues and hoover up all the CL revenue year after year.
Allowing states with infinite resources to own football clubs isn't ideal (especially morally dubious ones), but Football is probably more equitable now than it's been for decades.
If you make self sufficiency a hard and fast requirement, then every provincial club may as well pack up. If you want completely fair competition the whole game needs restructuring and converting to something akin to US sports, where resources are far more equitably shared amongst the whole league.
Until that, allowing some degree of "financially safe" owner investment is the only way to avoid the monopoly the old money (G14 type) clubs used to have (and in some cases, still do) over the rest of Europe.
