I'll take your word for it. I'm saying "most people" don't understand this because they see so many "big name" teams that spend a lot who aren't winning.
Dodgers spend 25% more than the 2nd highest spending team last year and weren't really contenders to win the NL last year. Angels continue to spend a ton and never win s***. Yanks haven't won in 6 years despite often spending twice as much as the rest of the league. The Mets were a top spending team for years there, while also being hot garbage....etc., etc.
The Leafs used to spend more than the rest of the league pre salary cap and we all know how that went.
Personally - I never really associate big spending with winning....although I do suspect the numbers suggest that in the long run, it gives you a higher chance. The Shatkins at $100M vs. Dom at $150M is a great example. $$ helps, but isn't the be all, end all.