Micky Adams is concerned that City could lose players due to the financial restraints placed on him.
He told the CET: "When you let contracts run you always run the risk of losing players. "Some will sign while others won't, but I want to reiterate that the club is in a poor financial state and has to take chances.
"All I can say is that I have made recommendations to the board and the rest is up to the football club to sort out the length of contracts and terms that are offered. Whether they are good offers, I can't tell you.
"Some players will already have had discussions with the club and all I would say is that what they have done in the last few months will be very attractive to other football clubs and I am sure a lot will get better offers.
"I think this football club is a terrific football club, but let's not kid ourselves. It has gone from £60 million in debt a couple of years ago to £20 odd million and we can't threaten the future of the club. So I would think we will lose people we want to keep."
On those players,Adams release, he said: "Some are disappointed and some are not surprised. "Tim Sherwood was certainly not surprised. From a financial point of view we have to make cuts where we can and he understands that. "If a manager said to me that I was not part of his plans next season I would actively try to get myself another club. "But, having said that, if those players are still here in July they will report back for pre-season training and be back in the frame for next season if they can't find another club."