A general, cross-version question....
I've tracked every item on the Finance screen (all income, all expentidure) over 37 seasons across FM 2020- FM2023. Limitations of the analysis is it's always with Celtic and always using the Console/Touch version on PC.
What I've found is that, unless the team has *considerable* sponsorship deals, the amount that can be spent on Player Wages, Staff Wages, Bonuses and Transfers is a direct correlation to Season Tickets, Gate Receipts, Prize Money and Transfer Income. Given Season Tickets and Gate Receipts can't change a huge amount (save longer runs in Europe), that income is largely what can be spent on wages.
So as a rule of thumb my transfer budget ~ my transfer income. My wage budget is usually around £700k-£900k (rises because I start to get higher Prize Money as I progress in Europe).
However taking a recent example
Transfer Budget: £104m (start of season)
Wage Budget: £1.8m p/w (start of season)
That season, I made £73m profit, of which £55m was net transfer income. If I imagine I spent all of the transfer income, profit is now just £18m (£73m - £55m). So if I spent £104m (the initial budget) then I'd have made a loss of £18m-£104m = -£86m
Taking wages into account, I was on £1.2m vs £1,8m at end of season. That would've been another £31.2m (£600k x 52weeks) loss on top of the £86m meaning it could have been a total loss of £117m. I don't recall cash in bank at time, but I think I would've been close to the red.
So how does FM calculate the budgets?
Does it alllow spending of cash reserves?
Does it allow debt to be accumulated?
At the moment, I can't see any sound basis for the budgets, they just look made-up.