I went from 80m in payroll to 38m with a transfer. That's about 42m. That translates to 21m. I remained competitive(13th pick the next season). I signed some decent IFA. My team became successful pretty quickly.
It's pretty simple. I took over a team with low payroll and little BL talent. I left myself the option to chase FA but, upon seeing what was available, I plucked comparable guys off the WW. With all the excess payroll, I chased IFA. I didn't wreck the world or the team.