I'm hoping that's not quite the context
Because even if that's likely to be true, don't say it publicly. Keep it in house and do something about it.
We are a rubbish team. Good talented young players should fancy getting into this team so that should be our selling point right now.
It also depresses the value of any we might seek to move on. Just a weird thing for a manager to be saying.
He is however sadly correct, the quality of the academy is, in common with most other football related operations at this club, a bit of a shambles currently. We used to be the go-to academy in the region. The decline is depressing.