DIskless system update using subscription-manager and yum

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I've got a server which I update using yum and that's mostly been working pretty well. That system also serves up system images a number of diskless clients. The client images are different from the server's system images. For the diskless client images using yum from a chroot to the diskless clients does not work (e.g., yum dies on "yum check-update" leaving behind a stack trace). I've had some luck using the installroot option for doing installs. It takes the switch for check-update and update but encounter problems that appear to be either related to the repo sites themselves or in a yum cache locally. An example is shown below. I've tried doing "yum clean all --installroot=/opt/services/diskless_boot/RHEL- " but that didn't help.

+ yum -y --installroot=/opt/services/diskless_boot/RHEL- --downloaddir=/home/usno/updates/RHEL- --downloadonly update
Loaded plugins: langpacks, product-id, search-disabled-repos, subscription-
: manager
This system is not registered with an entitlement server. You can use subscription-manager to register.
https://cdn.redhat.com/content/dist/rhel/server/7/%24releasever/x86_64/optional/os/repodata/repomd.xml: [Errno 14] HTTPS Error 404 - Not Found
Trying other mirror.
To address this issue please refer to the below knowledge base article

. . . (suggestions which mostly blame the repo owner which is Red Hat)

failure: repodata/repomd.xml from rhel-7-server-optional-rpms: [Errno 256] No more mirrors to try.
https://cdn.redhat.com/content/dist/rhel/server/7/$releasever/x86_64/optional/os/repodata/repomd.xml: [Errno 14] HTTPS Error 404 - Not Found