You don't have to tear it all down to rebuild.
1) no long-term deals to players 30 or older, stick to 1 year deals, 2 years at most. Look for bargains.
2) move out or allow to leave over 30 starters such as Cutch, Segura, Didi, JT. One or two is fine, not half your lineup
3) trade with an eye to the future, not short-term fixes. Always get a prospect thrown into a deal even if it costs you money
You can both focus on adding young assets and patch the lineup/pitching staff with short-term patches.
A good talent evaluator can find "diamonds in the rough" when he has a $200M budget.
And he'll bring in better scouts, revamp the LA operation, and build on the improvements in player development.
To me, $25M a year on scouts, coaches, better facilities, better nutrition for minor league players, more intensive LA scouting and networking would pay off far better than a deal like Arrieta, which I panned at the time b/c his velo had been declining. Phillies should have the goal of being the best organization in baseball - do that, and in a few years you'll have the best team.
I'd much rather spend payroll on locking up top young players early, get a discount and build a solid core than chasing big name free agents on the downside of their careers. But to make this strategy work, you have to find and develop top young players.