I think it's quite obvious, despite the Erhoff backfire, Wang had no intention signing anyone of any significance. He's obviously not gonna spend a dime until he finds out what is going to happen on August 1st.
No arena, no way he puts money back into the team. Even though Erhoff didn't sign, there were many other free agents that could have helped this team. And the fact that Marty Reasoner was the only signing, points back to August 1st. It seems pretty obvious.