I have seen this before, not necessarily in football, but if a manager creates a hostile environment, where everybody is blamed for everything except of course the manager him/herself, performance slumps big time. The manager can be charismatic, even brilliant in his/her field, but the behavior and management style eventually bites back, no matter how much individuals in the team are paid. The only action is to get rid of the manager asap, and usually it will take time to restore trust within the team.