Jay, it is definitely a sad state of affairs, but Perth did make a profit this year and, from the sounds of things, are on the right track.
I think Adelaide can get back up financially, but there are serious issues beyond Smyth's salary. In my opinion, there's a lot of focus of cost cutting on that team itself within the club -- reduced salaries for players, no player insurance, post-game meals being changed to sandwiches for a while there, an assistant coach gone (tough call, but I don't necessarily disagree with the decision itself), coaches salaries being pulled down, player's complimentary tickets for family being rescinded, etc. Yet for the most part, every player on the roster performed well. I think that looking for economical options within these areas is sensible (coaches salaries, or dropping an assistant coach [should've got him involved elsewhere -- look at the great work Ninnis is doing with Talking Hoops!], finding a more efficient caterer), but too many things would surely reduce the positivity of the players (remember Rees' reaction after the club wouldn't give his parents complimentary tickets for his 350th or whatever it was, or Willie's promised quilt saga!?)).
I'd look at the areas within the club that failed to perform, and look to trim the fat there.