I think they massively suffered for not trusting the manager. AVB, like most managers, had a very specific way he wanted to play, so needed very specific types of players to fit that system. He told Baldini and Levi who he wanted, and they came back with different players who they thought were "similar", but they thought were better value. Obviously that's doomed to fail, as what they think is similar about the players isn't neccesarily what attracted the manager to them. Instead of Moutinho and Hulk, he ends up with Lamela and Eriksen, along with a host of other players he didn't want.
As a result, they now have a bunch of players who don't really fit into any particular system, they alienated the manager and then fired him to cover their own mistakes, then hired a man based on absolutely nothing, who clearly has no idea what he's doing. Inevitably, Sherwood will take responsibility and be fired, many of the players will leave for losses, while Levi remains, despite him being the one at fault.