Oh yes, they were human managers. I had to look at their details to get their current bank balances, and had a look at their squads while I was at it. They had players in their starting XI with numbers higher than 11. Bot teams will always have players with numbers 1-11 in their starting XI, any injured or suspended players will be replaced with eligible players when the match starts.
If you have positive balance when you put the initial bid in, then you will be able to complete the auction however much into the red it will put you. If you have negative money you will not be allowed to put the initial bid.


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At level 10, I also generally do that but most of those teams will be abandoned when their managers will learn token is the most important thing in this game and they cannot acquire it easily unless they invest money 