There have been rumours about loan exits for the likes of Eugene Dadi and Megson said: "There are too many players in the squad. You have to get a squad where it is about quality not quantity.
"But when you have a club in the amount of trouble we are in you have to make it worse before you make it better. Financially speaking, that is a problem.
"With the number of players we have, we are going to have players not playing first team football and some not even playing reserve team football.
"One of the problems is that a lot of them are on money they can't get elsewhere.
"Some of them need to move on for their own sakes, but the money they are on stops them doing that."