The fee for midfielder Bostock, 16, could rise to £1.25million depending on appearances, but it falls well short of Palace's asking price of an initial £2m rising by a further £2.5m.
"For a tribunal to reward a purportedly bigger football club in Tottenham to take one of the most gifted young English players in the country for a sum of £700,000 is nothing short of scandalous," said Jordan, who sent manager Neil Warnock and chief executive Phil Alexander to the meeting at Arsenal's Emirates Stadium.
"The tribunal, in my view, are supposed to reflect the conditions of the transfer market place. And they came up with a figure of £700,000 for a player who has captained his country at Under 17 level, who is perceived to be one of the best youngsters in the country and is being chased by Barcelona, Arsenal, Manchester United and Chelsea.
"We had a £900,000 offer from Chelsea when he was 14 which we turned down. It's beyond me and it makes me question why I bother with football.
"I have an academy who have produced a world-class footballer for someone else and got paid two-and-sixpence for it. We weren't unrealistic - we didn't try to be clever and put a value of £5m on the player.
"We simply said this is what the player is worth, these are the reasons why he is worth it and all we wanted was a fair and equitable outcome."