Seems to be the Premier League trying to save itself .Top European teams dont need Leeds United or Everton to make big money .Top 6 Brit clubs two from Spain,two or three from Italy two from Germany two from France and form their own Super League .Top 6 teams in Britain all owned by non Brits they have no loyalty to the FA .Its all about making money Pay per view TV .Ganzee Sales and match day ticket sales .Whick game would have the biggest world wide audience Man Utd away to Barcalona or away to Fulham .If SKY Sports decided not to bid for the TV rights for the Premier League it would go bankrupt .
Your theory in principal is sound John M, but in theory I doubt it would work. The Champions league already exists and it has a following but nothing like what the Premier league or any other European league has.
Fer instance I started a Champions league Buster on here a few years back and you yourself were included, I followed it and it was a very entertaining even dramatic few months, but I was alone, not a single other entrant had any interest at all in the Champions league.