Yes indeed, this is where the team enters the bad cycle of demise. They sell good players to make money, leaving them with a poor team that is incapable of winning and therefore incapable of earning.
This could hit them hard.
Is there any way that a team can avoid or break this cycle once it has started? Anything, other than the random lottery win that would be finding natural talent locally, or having a junior squad good enough to promote to the first team?
Arsenal look to be trying to capitalise on Valencia's cash flow problems by aiming for a bargain buy in Raul Albiol. Albiol is one of several big players set to be sold in the near future because of the financial difficulties.
Looks like Arsenal will do well from Valencia's bad luck.
Albiol could be a real asset to the team, too. He's a very strong player. Too bad Valencia needs to cut their team as it just reduces their odds of having a good season of their own.