No sensible business would fail to make plans for any outcome, but Paul is delighted that the club did not have to end up scrutinising plans for relegation too closely.
After the Hammers had seen off Southampton in a 3-0 win at Upton Park to secure Premiership football next season, he said: "There was a contingency plan, but it is not easy to work around losing over £15 million.
"The big thing with us is the wage bill; I think we are the seventh highest payers this year and last year we were in the top seven or eight aswell.
"You are obviously looking for your league position to mirror that and we certainly wouldn't have been able to sustain First Division football with that sort of expenditure."
Several players on the fringes of the first team will leave Upton Park this summer, but Paul admits that the wage bill will not reduce as a result, since new players will be brought in.
He says: "We won't be keeping the loan players, with Sebastien Schemmel not seen by Harry as someone who could improve the squad for next season.
"Christian Bassila and Kaba Diawara will also be leaving."
But Paul does not see bringing in players on long-term loans as necessarily a bad thing and adds: "You want players who are committed to West Ham but if you can bring in the right players on loan, then that is a measure worth taking."
The departure of Davor Suker this summer - Harry is not taking up the option of extending his contract for another year - will certainly help the wage bill and Paul says: "Davor himself has said this has been his worse season because of injuries.
"He was certainly excited to come to West Ham and wanted to show us he could still do it in the Premiership and in the pre-season looked a very good acquisition.
"He has scored a few important goals for us but ut has not worked out how any of us would have hoped."
While the dismantling of the squad starts to take shape, the demolition of the West Stand is also underway.
Items such as Harry Redknapp's bench were taken down just hours after the final whistle on Saturday and the demolition work has now began in earnest.
Says Paul: "Everyone was in over the weekend and all the stock was cleared by Sunday afternoon.
The contractors and builders have been in and the power was switched off at 8pm on Sunday night.
"The last part to be taken down and kept was the sound system. In two to two and a half weeks, you will be able to see the pitch from the new West Stand.
"It is sad in a way because there are a lot of great memories attached to that stand, but now it is time to move on.
"We will have a wonderful building for corporate and non-corporate supporters and it will make us a seven-day-a-week business."
Paul thanked the supporters for their efforts this season and in particular during the game against Southampton on Saturday.
He said: "As always they were with us, even when things looked a little difficult and I would like to thank them for their support throughout this season.