"Back then I just thought we were spending an awful lot of money and it has been quite a fall from the top. If you don't plan the future right then this is what happens. As soon as you start selling players then the club is in big trouble.
"We lost an awful lot of players and if you took five of the best from Liverpool, Arsenal and Manchester United then they will struggle. We lost two England centre halves and midfielders of the highest quality and you have to look at the financial situation of the club to realise things were not right.
"I wasn't aware at the time that we had to qualify for the Champions League, but I was surprised at the time how much money was being spent. It's not just that, it's the weekly upkeep that is the biggest problem. We still have that problem in terms of the wage bill, week in and week out."
There is still hope Leeds can survive relegation. Manchester City meet Newcastle today and an away win at the City of Manchester Stadium is not out of the question.
"The only thing that matters to me at the moment is getting the players right for the Bolton game," Gray said. "But we've had a long time to get ourselves out of trouble, most of the season in fact, and we have not gone and done it."
A takeover by lifelong Leeds supporter Steve Parkin and his consortium is expected to be completed within the next week, in time for him to take charge over sales and decide whether a new manager is required.