A team in the red (no matter how big the red is) is not pumping money into the BB economy, the one between players. So, the money is outside the BB economy, the one where everyone is accumulating wealth somewhow with those high prices.
Correct, it is too late, the cows have left the barn before the door was closed. The inflation has already happened.
Examples: Team #1 and team #2 both start with $300k and get another $200k in the first few weeks, so each has half a million dollars. Team #1's manager is shrewd, spends his money wisely, and the team prospers. Team #2, not so much. He thinks a couple of all-stars will give him quick success, so he gets a 37-year-old for $300k from Team X and a 39-year-old for $200k from Team Y. He fails, the team goes bankrupt.
They already pumped $500k into the economy. Furthermore, you don't take the money back from Team Y and team X when team #2 goes bankrupt, so
that money is in the economy to stay . So once they're in the red it doesn't matter, it is too late.