Albion manager Mark McGhee today likened the club to a "black hole".
McGhee will see none of the money from the £250,000 sale of midfielder Darren Currie to Ipswich.
And chairman Dick Knight is having to "scrimp and scrape around" just to pay bills and wages.
McGhee gave the clearest indication yet of the severity of Albion's cash crisis after Currie completed his move to Portman Road yesterday.
"I still don't know if the reality of what is happening at this club has got across in particular to our own supporters," McGhee said.
"The financial situation here is desperate. Therefore, I had to concede when I was told about the approach from Ipswich that it was necessary for the future survival of the club that Darren should be sold.
"The club have to go back to the Public Inquiry for planning consent for Falmer. According to the chairman's best estimation, that is going to cost a further £350,000.
"We have this issue of Capital Gains hanging over us from the old ground (Goldstone), which is a significant amount of money.
"Every week and every month the chairman is having to scrimp and save and scrape around just to make sure bills are met and wages are paid.
"The best way I can describe the club at the moment is a black hole and anything that is going in is not coming out."
McGhee's hopes of signing Millwall forward Mark McCammon or Arsenal prospect Quincy Owusu-Abeyie are on hold until next month's FA Cup trip to Tottenham.
"Any budget that was allowed for the playing side has been spent and overspent," he said. "The Cup match might allow us some flexibility to find a loan, but the immediate answer is no.
"We are still short of what we are going to need to meet all those requirements I have described, so until that figure is met there will be no money going back out."
McGhee has eased fans' fears that Currie's exit will be followed by the sale of other top players, like Dan Harding, Danny Cullip, Adam Virgo and Leon Knight.
"The Cup game generates £250,000, so a player equivalent to Darren's value doesn't have to go because of the Cup game," he said.
"It's not an infinite amount of money we need. It's a finite amount of money and with the Cup game and Darren's departure we are getting close to it."
McGhee also believes his team can overcome the loss of Currie as they fight for Championship survival, starting at Millwall today.
"I think it's a massive blow to us all, including the players," he said. "However, players leave clubs for all sorts of reasons and the ones that remain have to go on. That is where my job comes in.
"It is my job to convince the players the loss of Darren is not the end of the world and that it was necessary for their futures.
"He made a big contribution and brought another dimension to the team.
"But we went to West Ham and won and he wasn't in the team. He's gone and we have to live with that. One player doesn't make any club.
"The departure of Darren isn't going to change the eventual outcome of this season for us, so we shouldn't get in too much of a panic."
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