All clubs rely on the owners' capital first since it can't be established without it. Then possibly they get loans from the banks to extend the fund while promoting the club and looking for sponsors. Of course, they need to invest in players and training facilities to improve this player performance to attract more sponsors. I agree, that for a club to flourish it needs a solid revenue with that the club should perform well in their matches, best if they become champion, to get more fans for shirt sales, match ticket sales, sponsors, tv ads deal, and so on. Capital can get them started but sales and sponsors will keep the club ongoing and the key to that is their match performance and marketing team.
I do agree that clubs do use owners money to a certain degree, but not all that much at all times, plus the debt makes them grow in value which is the way they make money. So, let's assume that your club worths 500 million if you wanted to sell right now, if you get a 100 million debt, but the team now worths 750 million, that's a profit.
It's not the traditional way of thinking about "profit", because usually profit is the money that you put into your pocket, but clubs are usually profiting the by going up in value.
This is why Newcastle and Everton are growing bigger by doing all of these, they are not after making a profit directly, they are after making the club go huge, so that if one day they want to sell, they can sell it for an insane profit later on.