Sort of agree and disagree. They were the original moneyball IPL team winning season 1 on a paltry budget. Their philosophy has been around picking up unknown players based on scouting and they partner with a company which provides them cricket analytics data, and had a guy Zubin bharucha leading that part - I think they were one of the first to do this in the IPL.
Their owners are savvy - Manoj Badale runs an investment company in London which has made a lot of money from smart investments in fintech UK. 2 seasons ago, they changed their strategy from being penny pinchers to splurging money. I think what they thought was that this is a watershed moment.. IPL teams are going to explode in value and in 10 years it'd have been seen as being foolish to be prudent with capital today. The mistake they made was in the team balance. They had had Smith, so wanted to retain him(1.8 million gone), thought Stokes would be better(1.3 million gone). The rest they bought for acceptable bids, but the 2 big players imbalanced the rest of their team. You need 5 good bowlers to win IPL trophies and they simply don't have those. They've also been loyal to a core set of players who didn't develop the way they anticipated - likes of Rahane, Samson.