The sensor arrays are a damned pain, aye. Andy is pretty spot on about the lower leagues. I started the game with Gainsborough Trinity in Conference North, and it's now the end of the 2009/2010 season and I've just finished top of League One by about 14 points or something. It's very easy to get going if you know what you're doing. Some tips for starting from the bottom:
1. Shift the deadwood. I had some defenders on like, 200 quid a week (At that level, wayyyyyyyy too much) who had tackling of 2. These players need to be evacuated quickly (I even found one like that who was already contracted til 2009!!). If you can't find buyers- and there's a good chance you can't- then offer them to clubs at bugger all. Also, try to play them in friendlies. Those games count as first team matches and another club might notice the player.
2. Look for players on frees, and on loan, that will improve your first team and your squad. Look for players from higher leagues on loan, and more often than not you don't have to give ANY wage contribution. Loans were key to my early successes- free transfers key to my later successes. There's no question about it, as a lower league club (especially conference north) you HAVE to scout thoroughly. A lot of players' stats don't even show up initially! A good tip for the early days is going to higher league (sometimes even your own league) clubs and scouting your way through their whole reserve teams. These players are easier to get and will play at what is really below their level a lot. If you need specific names, look for Hameur Bouzza at Watford, if he falls out of favour like on mine. Within a year I had teams offering me almost 2 million for him (Which I rejected to ensure I got out of the National...and now I can't sell the git).
3. Selling players. If you want to get ridiculous amounts, you'll often find you can get nearly double what a club will usually pay if you're willing to accept the cash over the course of two months. An excellent cash cow for me especially when getting promoted is to sell off a star player who maybe can't cut it anymore, in a 24-month spread deal (For instance, I sold Terry Barwick- look him up to see how crap he is- for 1.2 million...he's now back to being valued at 8k...I immediately replaced him with 3 vastly superior players for free). If you're desperate for cash, then ask for a bit up front, but your club's financial security can be guaranteed for years with deals like this. Any defensive mid who is actually played in between the defence and midfield WILL play amazingly. These high average ratings should enable you to sell them for a lot, and quality defensive mids are surprisingly easy to get on frees I found.
4. Friendlies! Yes, friendlies are, at the lower levels, perhaps THE best source of income you can dream for. A home game against a Championship side (and once you're in the conference national I think theyll pretty much all accept friendlies) nets you 35k I think it is. You can play pretty much as many of these friendlies as you have the patience for before the season starts. The only better source of income I found in these pre-professional days was a good FA Cup run.
5. Contracts. Keeping your wage bill down below the board's crappy permitted level will probably prove impossible (though you're highly unlikely to get sacked for that fact if the club's finances are good). But a good way to help is to offer players contracts even if they're not due one, with reduced wages. They're shockingly willingly to accept crap contracts at times. If a player is a squad player only, feel free to offer them MAXIMUM goal and assist bonuses they'll never cash in on in exchange for reduced wages. Defenders and defensive midfielders in particular should be offered these...hell, even goalies. Release fee clauses will also reduce the wages they're willing to take. In the case of star players, you could offer them promotion wage rises if you're going up, as you can afford them next year much easier. And if you're not going up, who cares! Another little trick is to offer new contracts to players who have promotion wage rises if you've suddenly got a great chance of promotion.
6. Media. To improve your profile, pick a fight with big bosses (Particularly Allardyce and Ferguson!!! GRR!!). Aside from filling you personally with joy, your profile shoots up (meaning better job offers), and more to the point- your players will love it! Do this regularly and with impunity. And if say, Colin Hendry is around, praise him...and he'll praise you back. As a side note, I'm fairly sure that my constant goading of Ferguson while the pressure was on him at United got him the sack
Follow these tips for financial stability, particularly in the lower leagues, and snag the best players you can on frees! I've shot through the leagues like this, and I don't think it's just because of my diamond formation.