Manchester United chief David Gill says there's no panic at the club over the resurgence of Chelsea and Manchester City's new money.
Gill insists United will meet the challenge head on.
He told the Independent: "It is quite interesting that when Roman Abramovich first took over Chelsea in 2003 people said it would be impossible to compete with them. They spent a lot of money very quickly. Then they dropped back a bit [in terms of investment]. City have ambitious plans and you have to respect those. They will continue to attract top players to the club.
"[Next season] there is a limit of 25 in your squad [with unlimited under-21s]. We have to have the best scouting, the best analysis and then compete for the players and make sure we can sell to them the benefit of coming to Manchester United: 76,000 every week, the history and heritage and the great players.
"It is a balance. It is not as simple as saying 'We have the most money, we'll buy the best players'. There is a correlation between the wages you pay, the transfer fees and the performance [but it is no guarantee of success].
"We are not skinflints. A first-team player in the squad at Manchester United is not going to be hard up even with a 50 per cent tax rate. We have to invest in all areas of medical and sports science. There are enough players out there and we have to ensure that we get the best players for United. It is good for the league. To have strong competition is no bad thing.
"We are not frightened by the competition. Our business model is good. We have revenues touching £300m and growing. Football is a high-margin business. We continue to invest in players. We have got plans to improve the training ground again to attract players. We are doing work at Old Trafford to improve the executive experience. But we can do it within our own means."