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"The simple reality is that this is how it is for a lot of clubs at the moment. As far as we're concerned, there'll be no big money for me to splash around," he told the club's official website.
"The budget will be limited. But that's a reality of football generally and doesn't just apply to Villa.
"In the main, the bottom has fallen out of the market to an extent that moving people on will be as big a problem for clubs as actually getting people in," he added.
"It's not a problem that's unique to Villa, but it's typical of the situation throughout the industry at the moment."