UEFA president Michel Platini has long been an advocate of making European football more financially sustainable and fair with FFP having been introduced to stop clubs from spending more than they earn on players.
The concept remains complicated and Pardew believes it has done nothing to reduce the financial gap between the biggest clubs in the English Premier League and the likes of Newcastle.
Despite spending over £30million to bring in the likes of Papiss Cisse, Yohan Cabaye, Moussa Sissoko and Vurnon Anita since the start of the 2011/12 Premier League season, Pardew has bemoaned Newcastle's lack of financial clout compared to Manchester City, Chelsea, Manchester United and Arsenal.
"It's beginning to be a bit of a concern, the gap they're opening up to the rest of the Premier League," Pardew said on Sunday.
"Financial Fair Play was meant to even things out a bit but it doesn't seem to have had any impact at all.
"We can only try to improve with what we have.
"I do think we will do some business before the window shuts, so perhaps it's a bit more lop-sided as things stand.
"City are backed by the revenue of a state. It's very difficult. I don't begrudge them it. They have a business model and if they can make it work for them, hats off to them.
"Our business model is such that we can't generate the money they can, therefore the gap widens."
Newcastle will travel to take on City on Monday in their opening Premier League fixture of the new season having never won at Etihad Stadium but Pardew is convinced his team can win away at the big clubs.
"I don't think there is a mental barrier," he said.
"We've beaten all the big teams or at least taken points from them.
"City are the one big team we have never done well against, so it would be fantastic to bury that one as well."
