"This fee is the reality of being a Premier League club with ambitions to become a permanent constituent," he told the Hull Daily Mail.
"Therefore, the fees get real and things become more expensive, but that is the cost of a place in the best league in the world.
"It's about doing what needs to be done for the club to move on.
"There's no point thinking we're going to be trying to build a squad to win the league next season.
"We need to focus on getting into mid-table and that's an expensive ambition, whether that is in terms of wages or transfer fees.
"It's about making sure we spend every pound wisely and ensuring we get value for money because that's the only way you achieve things, rather than just paying for it.
"In my life, I've always tried to achieve things, rather than just simply buy things."