Ok, having thought about it, the answer I feel is give teams more money, so the smaller clubs can catch up, rather than making the bigger teams cut down. Therefore each team will receive £200 million in prize money/tv rights money every year. This payment will be delivered in two instalments, one totalling £100 million on the 1st of January, and the other also totalling £100 million at the end of the season.
If you find your team still in the red after all of this money is handed out to you then this i will deem this to be your fault and FULL SANCTIONS will apply to your team for being in debt and failing financial fair play.
I am aware that this is not a perfect fix but it will keep the game running for a while.
I urge all chairmen to PLEASE keep an eye on your finances. On your finances screen just keep a check on your projection and stuff like that, as your prize money will not show up in here, you need to make sure you will not be more than £100 million in debt at the end of the season. If you think you will fall foul of these rules, your wage bill IS to high and you WILL need to sell players to bring it down/raise some cash.
The huge piles of extra cash that the smaller clubs will no doubt receive should help them improve their squads and hopefully will see an ever tighter league with even more upsets!