I understand Schlupp, McArthur, Kelly and Henderson all signed contract extensions before the start of this season.

"Better to keep your mouth shut and appear stupid than to open it and remove all doubt."
Mark Twain.

Lot of fuss about nothing when you boil it down...

5 players needed 2 x CB, 2 x DM, 1 x Winger

Sakho/Dann/Cahill - Need to be replaced, 2 CBs required
Townsend - Needs to be replaced , 1 winger required (Lookman would be good if Fulham go down)
2 x Jimmy Macs - keep one for cover, but realistically 2 Midfielders required (Flynn Downes from Ipswich and Anguissa from Fulham, Gallagher from Chelsea would all be better than we currently have. I think Lundstrum is already lined up on a free from Sheff U)

Then:
Wickham - Release - no great shakes, never plays
Hennessey - Not good enough, Jack Butland has already been brought in.
Kelly - Renew for cover.
Jach - Release - not good enough, never plays
Benteke - Release, not good enough, Already replaced by Mateta.
Schlupp - Renew on same wages or better.
Ward - Renew on same wages.
Clyne - Renew on same wages.
Henderson - Never plays - release and move up Ollie Webber.
Mitchell - Keep on a much better contract.
PVA - I think he wants out, Mitchell has already replaced him, Schlupp, Jairo and Ward can all cover at left back.
Batshuyi - Return to Chelsea, loan someone else in.

Simples - 5 new players in, some hefty wages out makes plenty of room. Plus one new manager - Howe, Lampard, Thomas Frank or Scott Parker I guess. Anything but Roy would be my preference. He would not last the full season if crowds get back in the stadium, dishing up the same football he has done in the last 12 months.

Little or no resale value.
Any capable replacements will cost significant sums and of course one has to factor in their wages.

Most of which could well go on making Mateta's loan permanent if he proves this season to be what we want (although it's an 18 month loan, Mainz need the money and we wouldn't want someone coming in and gazumping us so may choose to fork out early for him). What's left may stretch to a CB if we have one in mind and he's available at a good price.

Reading through Hodgsons recent statements. I get the feeling that he doesn’t see to much need for change in his squad, or in his status. So if the club are keeping him in the loop , it would seem neither do they.
Where it is less clear , is what effect the COVID situation , is having on finances going forward, Guitas contract has been sorted, and Clyne, has had an extension so they are working on them, it can only be a matter of how generous the offers can be as far as the players they really want is concerned. There are some , no prizes for guessing who , that wouldn’t be much missed, and will be wished luck in the future.
Hodgsons quote,, that they will have to rebuild if not enough are retained is only stating the obvious. But the problem for the club is equating lost revenue , with giving McCarthy, or VA a rise because if they don’t maybe Celtic, or Arsenal will. The other side of this is no club is free of this problem and there will be some good reasonably priced players in the market if replacements are needed.
Outside of all of this, is does the club want to offload not just one or two big earners, but one or two sets of old legs? And if Roy’s for the chop it wouldn’t seem he knows about it.

Agreed