In the short term, there is certainly nothing wrong with this spending, provided the rugby clubs outlaying this money can sustain the payments long enough for the clubs to gain the desired outcomes which is obviously growth and success.
This is becoming more and more popular as amateur clubs are finding the limits of amatuer rugby are too constraining and want to take their game to the next level. Of course this doesn't always work out optimistically, but the idea is there from the outset. All that is needed is careful planning. These clubs venturing in to new territory adopt a kind of new small business structure initially which enables for careful feasability studies and the like to see whether venturing in to this new realm is feasible. For most clubs considering it, it should be possible. In the short term all it can do is strengthen the match quality.
However, in the long term, without growth in players salaries and an overall approach which is stale and has been used for too long, will cause the club to fail. Constant re-evauluation of the envisaged goals must take place with new goals to be set. This is the only way a club will grow.
So yes, in essence this "BIG" money is good, just as long as careful planning comes hand in hand.
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