Liverpool manager Rafael Benitez has revealed his club are struggling to compete in an over-heated summer transfer market.
The Reds paid £17m for Portsmouth right-back Glen Johnson, but saw long-term target Gareth Barry opt for Manchester City rather than Anfield.
The Spaniard is also preparing to fend off enquiries for midfield pair Xabi Alonso and Javier Mascherano.
"The market is now crazy. It is all money, money, money now," he said.
"We had to pay big money. But we were signing a good player, an England player (Johnson), and that is very positive."
Johnson was reportedly tracked by Chelsea and Manchester City, two clubs whose owners have contributed to spiralling transfer fees for top players.
Since he bought the club in 2003, Russian billionaire Roman Abramovich has supplemented Chelsea's transfer funds with large loans, while City were taken over by the ambitious and wealthy Abu Dhabi United Group in September.
Barry, 28, who came close to joining Liverpool last summer, became the latest big-money arrival at Eastlands as he followed Roque Santa Cruz, Jo, Robinho and Craig Bellamy in an £12m move at the start of June.
"City have signed a lot of good players, but that is no guarantee they will win anything. But it will be interesting to see what happens next season," said Benitez.
The summer's most spectacular spending has taken place at Spanish side Real Madrid, where Benitez spent his early years as a coach.
Cristiano Ronaldo, Kaka, Karim Benzema and Raul Albiol have been recruited at a combined cost of about £183m, but the Reds boss warned that building a team through the chequebook is no guarantee of success.
"Things have changed. You have to adapt to a situation. Manchester City and big clubs in Europe are spending big money, so the market has changed and we have to work harder," he added.
"If you spend big it is always easier to perform well but when you have a good understanding between players, that is also important. If they are together, they work hard, that is just as important."