Sunderland will welcome Newcastle for today's derby at the Stadium of Light.
On Short, Waddle told the Sunday Express: "He's another who has invested to stay in the Premier League. I think he has also got to a level where he feels he can't compete any higher. He can't spend the money the fans want him to spend.
"They have brought players in but no one to make you go, 'Wow!' Some might say Adam Johnson, but he had lost his way at Manchester City. Why has Jack Rodwell left City? They are still relatively young players, so why were they let go?
"With the size of their support, it's ridiculous Newcastle last won a trophy in 1969 (the Inter-Cities Fairs Cup) and Sunderland in 1973 (the FA Cup), but the only way that will change is if you find a Roman Abramovich or a Sheikh Mansour type, for whom money isn't a problem - someone who doesn't care what it costs to win trophies."