Great to see this back up again, I've read it earlier but don't think I've commented.
You look a bit hard done by the budgets you're given. I've taken Port Vale along a similar route (obviously through the English leagues) and I've been given around £20m transfer and £550k wage in my 3rd Prem season. So I feel for you!
Tried a similar tactic to you (I copied the idea, but made my own) and it works well but sometimes I struggle against teams I'm expected to beat, but the underdog wins make it much more fun!
Good luck for the upcoming season!