Bit if an odd one especially as I have yet to see this .... But I don't see why this wouldn't happen

County has a budget of say £900K
The previous season they win £200K in prize money

They allocate all of their £1.1M on players

The following season they win the minimum amounts for being knocked out at the group stage and finishing bottom in the county championship.

The end of season contracts bit of the game starts

They have no players who have expiring contracts - no overseas players

How does the game deal with the fact that the team can no longer afford the existing deals of the squad

Do they look to retire a player or players to bring the team back into budget ?
Would be interested to know how this works