In a way the sugar daddy clubs aren't bad for the sport. Rich investors put money into the sport , giving large sums to other clubs for their players, and then the receiving clubs can reinvest that into the club and youth development. If a rich businessman believes a soccer club is a good investment, the money brought in is good for the sport.
And who is to say man city (for example) is bad for league enjoyment. It pisses off the other rival clubs because of threat but theoretically it adds another strong club to the mix for stronger competition.
You're assuming there is a bottomless well of top flight talent out there. If 2 or 3 full teams worth of top flight talent gets concentrated on one team it dilutes the rest of the league.