A little of column A, a little of column B. In the 19/20 season when we were relegated, we made a 2.6m profit thanks to the sale of Bowen, but in 20/21 getting promoted from League One we made an 8.2m loss (arguably that was due to their investment to get us back out). This scaled back to a 6.1m loss last season, meaning over that three year period we made a net loss of 11.7m, well under the 39m allowable limit. Then the 2.6m profit year drops off and whatever craziness happened last season gets added on to the rolling calculation meaning we're sitting at 14.3m + whatever we lost last season. As long as we lost less than 25m (and I'd bloody hope we lost a lot less than that) we're fine for FFP, and then that bigger loss of 8.2m loss drops off for what we can then lose this season, and so on.
Much like Newcastle under Ashley, the Allams profligacy was actually attractive to a new owner as it meant much more scope to invest quickly, it's just a shame a lot of it was wasted on loan fees/wages and Turkish wunderkinds.