The problem now appears to be that he bought another developmental player for what appears to be a 1 bid auction at a price that probably isn't worthy.
While D.III is not likely to occur immediately, I think you could very easily stay in D.IV with a couple of decent 10-15k veterans. Just get 1 or 2 good ball distributors and 1 big that can rebound and shoot and you should be able to win enough games to avoid relegation.