You see I've never quite seen this reasoning over the long term regards overspending. We are, consistently (and the PL in general) quoted large amounts for players and we do seemingly often loose out to the likes of Bayern-Juve-Real and Barca. No matter how often we turn away from a deal, whether it be Isco, Hazard etc we are still quoted high fee's - not paying them isn't changing the fact we are being quoted high figures. We don't have the pedigree the aforementioned clubs have to attract the players, and I think this goes a long way into getting lower fee's overall. So really, wouldn't it be more prudent to overspend on a truly world class player, and create a world class team so in the long run you get better dibs on subsequent players? Or, we deny ourselves these players and keep entrapped just outside the football elite.
Overspend now, establish ourselves as the big thing and then our name will make it so much easier.