"I'm all for spending what you can afford. If you can afford £500million because that's within your remit then good luck to you," he said.
"If you can't, then I'm sorry you don't. That's how I work.
"You don't mind taking the occasional risk. If you think it's for the benefit of the football club in the medium to long-term - someone like Ashley Young who has more than paid his way - that type of thing you don't mind doing once in a while.
"But if you are going to be reckless then I'm sorry, people have put trust in me and I am going to have to try to abide by that. You also accept the fact it's like catch 22: where do you go to compete with the big boys? Those things are important."