That I actually agree with, as I've mentioned a number of times (and you have too, I know). But, he also is making a gamble on promotion. If your lot go up you may be lucky enough to have enough left over, after he sells and gets as much out as possible, to have a chance of surviving, especially if the new owner (if a stupid enough one can be found) has sufficient dosh and is suitably benevolent. If you don't go up, the shit really hits the fan for you, and it's almost certainly goodnight Vienna for Cheats FC.
Fingers crossed.