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How do club finances work?


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I've wondering how club finances work as my club is skint even though the fair play rules said we're on course to make a £185m profit this season and we made £235m profit last season. Yet my wage budget was only £1.9m per week and transfer budget was £10m - the transfer budget has been dropped to £0 and the wage budget to £1.4m pw as the club is £16m in the red - so what has happened to all the profit the club has made?

I'm on my 1st save which I started with Portsmouth in season 2013/14 in League 2 and am currently in season 2027/28 still with Portsmouth, I got to the Premier League in 5 seasons and have been there since, with the last 2 seasons also in the CL - over the course of the game I've only spent £157m on players in total, and recouped £127m, every season I've been on course to make a profit according to the fair play rules with the lowest in the Premier League being a £35m profit, but normally around £85-90m profit apart from the last 2 seasons when it was £235m and this season £185m - so where is all this money disappearing to? because even if I used my total wage budget and transfer budget and say another £30m on top in expenses/player bonuses, I should still have well over a £100m left from last season and shouldn't be in the red.

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Money spent on things like youth development, youth academies etc doesn't count towards the total. It means a portion of the clubs expenses won't count towards that limit, clubs who spend a lot on youth development may still lose money (as my Irish team currently do) but when it comes to the FFP calculation are still turning a profit.

Edit: Also I think the calculation is based across the FFP monitoring period which is a few years, so with premiership revenues and current expenditure then it may indeed look to be a substantial amount.

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