I wouldn't pay that pep comment much attention to be honest. I think he was taking the piss out of the question a little. We only don't have the money to splash on him for two reasons:
1 - we don't tend to splash over a certain amount on bringing a player to the club, and by that I mean the whole package of wages, fee and agents requirements. If anyone tries it on they go the way of Sanchez, long gone are the days od city being held to ransom and seen as a free lunch ticket.
2 - money from our total available spend has already been earmarked for other players, and is spread across what we need rather than what sounds great.
I can see us spending around 120-180m this summer, depending on who leaves. Despite the protests of the media and other fans, we are actually a very well run, extremely profitable, football club, who certainly doesn't overspend. Even the recent pep rebuild was done well within budgets, and that turned out pretty well!