Birmingham chairman Peter Pannu insists club owner Carson Yeung will continue to provide "sensible" financial backing for the Carling Cup holders.
But Pannu warned there will be no "crazy money" splashed out by Yeung this summer even though City's squad will need boosting after qualifying for the Europa League.
Pannu was responding to reports interpreting Yeung's programme notes for Sunday's home game with Fulham as there being little money to spend, and said: "I think if people read Carson's words carefully and used basic common-sense, then they will understand."
He added: "Carson is not saying 'he won't spend.' He is saying the spending has to be sensible.
"The infrastructure and the squad will be improved and he made it clear he is not stalling his financial support.
"But just because we qualified for Europe, and the possibility of extra games, doesn't mean we have to be throwing around crazy money like £50 million or something.
"There is no point in elevating the expectations of anyone in an unrealistic fashion. Carson remains totally committed to the club and will continue to provide the financial backing, as he always has."
Yeung had written in his programme notes: "Heading into Europe is great for the club but we do have to keep our feet on the ground and be realistic about things.
"Of course, we are going to look to improve the infrastructure and the squad - but that does not mean we will just haphazardly pump loads of money into things.
"Every club is entering into an era where financial prudence has to be the key."
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