You would expect so, but what worries me is that they will have a good idea of what income they are likely to get in the coming season. They seem to have set a budget within those parameters, so are cutting their cloth accordingly.
Therefore the budget only allows maybe a small amount for transfers if anything and players wages are at a level that will only attract league one or two players or maybe older or poorer quality players from the championship looking to get a year or two extra payday before they retire.
In a nutshell, they will work with their means, which ultimately means the squad will only be good enough for scrapping around the bottom end of the table or at worst relegated.
I really feel there is vindictiveness in their intentions, and they will just hang on until the bitter end, but as you say will go when it no longer is possible to operate. When that is nobody knows!