According to Wiki (if correct) not strictly true about being created by clubs on the continent, Perez, Agnelli, Glazer , Henry and Kroenke were the behind the idea of the ESL .
Why would Spurs become irrelevant , two bigger clubs than Spurs i.e Bayern and PSG turned down the idea so they didn't think they would be irrelevent.
Also have to ask the question why were Spurs involved , if you go on domestic trophies won Villa are a bigger club than Spurs , that should raise a few eyebrows.
On the role of the regulator , they will have no power to alter the rules of the PL that is not their function, those rules are made by the PL clubs themselves and as we have seen they are not fit for purpose.
en.wikipedia.org