Watford need Udinese to sell them last season's loans as free transfers, but with Udinese qualifying for Europe they will need those players next season. Remember, in the play off Final Watford only fielded four of their players, rest were loans. They could end up with an awful team and really struggle unless they make a hatful of quality signings. I like the look of the Wigan / Reading / Forest prediction, with Bolton the other threat.
Promoted Reading, Forest, Bolton Relagated as I think the small teams will struggle, Yeovil, Bournemouth, Leeds.