Its not like we are signing a whole new 11, right? Ok, lets say we don't get KDB until about a week or 2 before the season starts- would you say we should pull out of the deal just because we didn't have enough time to get him ready for the season? if we beat Chelsea and make a mess of the remaining games would we get the title ? there's more than enough time for the new signings to get ready. The squad is ageing and we need to spend a lot of cash, saving 10M from Sterlings transfer and then using that amount to strengthen the squad doesn't sound like a bad idea to me besides we don't want other clubs to have this idea of us being a club that meets up with every ridiculous quotation thrown at us.
You're forgetting that one of the biggest factors in a transfer is the players desire to move to the new club.
What message is it sending to Sterling and future transfer targets if they know we might be willing to back out of a deal for as little as £5m?
We haven't got pull of Barcelona or Real Madrid but trust is a rare commodity and if players know we will do everything we can to get them then they'll do everything they can to make the deal happen. If Sterling turns round to Liverpool and says I only want to join City, it puts the power in our hands. It won't matter if other clubs are interested in future deals if players know we'll be true to our word in discussions with their agents, they'll want to come to only us and that's a long term strength, not a short term fuck off over £5m.