Our income will be down £20m due to fall in broadcasting revenue (parachute payments). If we don't cover that with income or cuts we will be £20m further in debt for the year.
The FFP 3-year allowed loss limit for us decreases by £22m (the £35m for our last year in the PL replaced by £13m for this coming year). So it's possible we will have to reduce our loss for this year by £22m (I say possible, because it depends on how much we actually lost over the last 2 years).
Add the 2 together and we have to find £42m, either by new income or cuts, to meet FFP. Possibly. The FFP limits for each of the past three years have been £35m, £13m, £13m (giving an allowed loss over the 3 year period of £61m). HOWEVER, if our actual loss over each of the last 2 years has only been £13m each year, then we're allowed £13m loss for this year, the same as last year, and it's only the £20m parachute payment drop we have to cover for FFP. I THINK that's right.
Where does the FFP money go? I.e. if we manage to get cash for Jack what happens to it? It would go towards reducing the £20m additional debt which we're heading for this year. If we get more for player sales than £20m then that can go to reducing the £13m loss we may be heading for.
There is a big snag. When a club makes a loss, it's effectively financed by the owner, either by the owner making a loan to the club, which is repayable, or by the owner putting equity into the club (creating and buying shares), which isn't repayable. If Xia has no money he can't finance our losses. So we have to aim to make no loss. Or build up debts to other people. Gets nasty!!!
Edit: If we really do only have to cover £20m additional loss over a £13m allowed loss this year, and we have a new owner who can afford to put £13m equity into the club to cover the £13m bit, then selling Jack might see us OK or close to OK, for this year.