Aston Villa boss Paul Lambert is downbeat over chances of making a top January signing.
Manchester City defender Joleon Lescott and Tottenham midfielder Scott Parker have been linked with Villa.
Lambo said: "Are the fans living in dreamland? Yeah, "Money - that's the reality of it. We can't do it. We just can't do things like that.
"I speak to Randy Lerner all the time and I have a good relationship with him. He knows the situation and has been really supportive.
"But I also understand the finances at the club as well and what's going on."