“It was reported that one of those targets was Jamie Vardy, and while it is true that we would loved to have had him, the numbers being talked about in a potential move to Arsenal show that the market is going potty,” Sullivan wrote on West Ham’s official website.
“It is safe to say that signing him would have smashed our current wage structure and we are determined to buy players with good value in this mad market.”
Vardy was one of the best players for Leicester this past season and was a key player in their Premier League title triumph.
The England international striker scored 24 goals and created 46 chances in 36 league matches for the Foxes during the 2015-16 campaign.
Arsenal are reportedly interested in signing the 29-year-old from Leicester in the summer transfer window.
The numbers are huge, and West Ham were not not to pursue a deal for Vardy.
First and foremost, Vardy has had just one great season in the Premier League, and that too in his late 20s. There is no guarantee that the Englishman would be able to repay his heroics during the 2016-17 campaign.
While £20m as transfer fee for a Premier League-level striker is not too much these days, a weekly salary of £120,000 is too much.
Moreover, there would have been no sell-on value for Vardy had he joined West Ham.
The Hammers will probably be aiming for a top-six finish in the league next season, and Vardy would have been too expensive for them.
While the London outfit do need a striker, they have to make sure that he is in his early or mid-20s and does not have massive wage demands.