not sure why any of us is even trying to justify what our club spends in the name of improving the squad but it's obvious that as soon as City are interested in a player, then his selling price will increase.
As for increased wages - I've already said it on another post, no-one leaves a current employer (by choice anyway) for the same/less money than they are already earning - why would you? If you're going to uproot your family it has to be worth your while.
Oh, and one more thing....
isn't there a 50% tax regime due to come in next year? Well, that's going to impact every players wages in the EPL so if you're on £140K a week now and in the current 40% tax band, you're coming out with about £90,495.60 a week (or thereabouts). Next year, it will be £79,955.60, so you'd be taking a pay cut of over £10K if you stay put.