I don't think my brain is fully functioning yet - in my head it seems like a good idea, but I'm probably missing something.
Clubs would still be able to go into debt, subject to some limits (as we have limits now). And if they went past those limits, they'd face sanctions/points deduction. But...
No. The £17m fine will be an expense in the accounts, but not for FFP purposes.
Here's a crazy FFP idea:
How about clubs can spend as much as they like, as long as all debt is underwritten by the owners/board.