Thanks Indeedido that helps explain a fairly complicated process for me at least.
It seems a bit of a farce that EFL have rules in place on FFP but won't enforce until absolutely pushed to, almost as though they are relying on a system of honour in one of the most dishonourable industries in the world.
Personally I am not a fan of FFP, I take the view that if Steve Gibson or Mel Morris want to waste their money on a football club that's their business in the current ownership model. If the EFL, EPL, UEFA etc... want to create a more level playing field a salary cap would be better, but that wouldn't wash with the established big players in the Champions League. A more sustainable model would involve trust and fan ownership, but that there are too many snouts in the trough to want that!