Lee Clark has told Blackpool chairman Karl Oyston he will have to pay some big wages to make the club competitive in the third tier.
Last season’s bottom Championship club Yeovil now occupies last place in League One and Clark says that must not happen to Pool.
Although the Seasiders are yet to be officially relegated, their fate is likely to be sealed within a week and Clark’s rebuilding work has already begun.
The manager said: “In the conversations I’ve had with the chairman, he realises we have to have players who are on a higher salary level if we are going to compete.
“He realises that for us to compete at the top of the table, we need these types of player.
“We also know we have to look at players who will be able to play for us at Championship level in the longer term, when we come back up.
“But if we are aiming for that type of player, they are going to command a decent salary.
“Obviously we’ll have to cut our cloth accordingly with some signings, but we will still have players at the higher end of the salary levels.”
Talks have taken place with potential targets already, and thoughts have also turned to keeping the best of the current crop this summer.
But with Pool at rock-bottom in terms of both league position and supporter relations, Clark realises serious action is needed.
He said: “Talk is cheap. We have to deliver. Without doubt the chairman has to back up positive words with action now.
“We’ve spoken about that and I’ve given him the message that this can’t happen again.
“I don’t like people who just talk and nothing happens. I’ve told him that can’t be allowed to happen.
“He understands what needs to be done and has given me assurances.
“We have to turn this adversity into a positive this summer. We have to shake up the mentality and get the fans back on board.
“All aspects of the club have to be rebuilt now, not just on the pitch but the pitch too!
“I’m talking about the supporters too. We need to give them something to be encouraged by. It’s a big job but I’ve started on it already.”
One issue often highlighted is the lack of a management structure at the club since the departure of Matt Williams last summer.
Williams has since enjoyed success as chief executive at Shrewsbury, who are second in League Two.
His title at Blackpool was ‘secretary’, though his responsibilities were more wide-ranging and Clark admits the structure at the club requires improvement.
“The situation we are in has highlighted a lot of not so good things in this football club,” he said.
“We have to put these right and that includes the structure. It’s all about having things in place behind the scenes that other clubs take for granted.
“We have to at least match their structures if we want to compete with them.
“We also have to give the fans a squad worthy of playing for this club.”