Southampton chairman Ralph Krueger admits Liverpool's pursuit of £75m signing Virgil van Dijk created a "dark cloud" over St Mary's.
Liverpool's original interest prompted a transfer request by him last summer.
"Emotionally, it threw us off balance and financially it was a huge business risk," Krueger told BBC Radio Solent.
"To make a stand and principle like that creates an earthquake."
Krueger also offered his support to underfire manager Mauricio Pellegrino.
"In no way shape or form am I angry at any one individual for what has happened here in the past months," Krueger said.
"It was under the shadow of a stand and principle. That chapter closes now. The cloud was there, we allowed a certain negativity into our very fragile environment, which is based on positivity, creativity, unity and looking at solutions.
"I believe we can truly get back to that now."