The Liverpool manager, speaking at the unveiling of £17million England full-back Glen Johnson, said that the market was now "crazy" and dominated by money.
He even admitted that he had tried again to sign Gareth Barry this summer from Aston Villa, but he eventually went to City.
A large chunk of Johnson's transfer fee was wiped out by the cash Portsmouth still owe the Anfield club from the Peter Crouch deal. Benitez said: "We had to pay big money, the market is now crazy. It is all money, money, money now. But we were signing a good player, an England player, and that is very positive.
"He has a good mentality, and when I spoke to him first it was clear he wanted to come here.
"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.
"You have to do that to stay at the level we are at because of the big money being spent here and abroad."
City also wanted Johnson, but Benitez said: "It was difficult, some clubs are offering big money. But he wanted to come here, that was the difference.
"We did go back again for Barry, but as I said. it is all about money, money, money. It is as simple as that."
On City's influence on the market and their prospects for next term, Benitez added: "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.
"But whatever happens, experience is more important and we feel that we have that to be in the top positions.
"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."
What do you think? Have your say.
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Old User, Nowhere (09/07/2009 at 15:47)
OrigamiNinja, Inverness (09/07/2009 at 15:50)
Anyone would think he got Liverpool to where they are having brought in loan deals and free transfers! He has spent £millions but now his club havnt got a pot to pee in he doesnt like it! TOUGH!
Stephen Irelands Bald Head, Hyde (09/07/2009 at 15:52)
This stinks of Jealousy and he needs to concentrate on his own club and stop worrying about ours.
I'm sure, if they keep their better players the scouser will be there or there abouts at the end of the season, however if they lose Masch and Alonso then they will struggle to get in the top 2 or 3
In KAM, GC&MH We TRUST. CTID
Mabalsa Ricci, Manchester (09/07/2009 at 15:54)
.....How much have you forked out in your time at Anfield again rafa?!
Raindazed (09/07/2009 at 15:54)
Wigan Blue, Wigan (09/07/2009 at 15:54)
Ste , Cheshire (09/07/2009 at 15:56)
The Kippax Kid, Irlam (Now London) (09/07/2009 at 15:58)
Earpie, The Wild West (09/07/2009 at 16:02)
Why is so wrong that City now have money, let me think now, breaking up of a cosy cartel, peutetre ?
LisbonCasual, Portugal (09/07/2009 at 16:04)
Gaz, Gorton (09/07/2009 at 16:04)
That way the cosy top four will be protected and little Man City will accept that we know our place. You will then be happy as will the media.
Real Madrid spend crazy money and it's exciting, we do it and we are slapped down. I bet if Madrid offered £80m for Gerrad he wouldn't have a problem spending the dosh would he?
Rafa, you were much better when you were a doorman at the Pheonix Club.
mt63, fallowfield (09/07/2009 at 16:05)
paul leigh (09/07/2009 at 16:08)
What is it with you Rafa? First you slag off United (favourite past-time).
Now you're having a go at City. What's the matter frightened United won't be your main nemesis and litte City are going steal us from you? Or do you just hate anything from Manchester?
Wouldn't be griping if you had loads of dosh would you?
Stick to your own problems and leave Manchester alone!!
ttp, grt mcr (09/07/2009 at 16:17)
Soothsayer, Warrington (09/07/2009 at 16:18)
Neil Mcnab's Moustache, manchester (09/07/2009 at 16:20)
mancitypj, Denton (09/07/2009 at 16:22)
And so say all of us! Couldn't have said it better myself!
Help for Heroes (09/07/2009 at 16:23)
Admit it you're now scared that the not so "big" Manchester City are putting you under pressure and you don't like it. Don't worry we'll be making you pay your players more soon, just like Chelsea will have to pay JT more.
Peter Doherty. As good as it gets. (Debt free) , Levenshulme (09/07/2009 at 16:26)
Eduardo Anton (09/07/2009 at 16:27)
- Raziola -, Nottm (09/07/2009 at 16:32)
Get over it Brent, City are coming!!
Mark & Dawn, Canterbury (09/07/2009 at 16:33)
These clubs just hate the fact that we have more money than all of them put together, and that we can splash the cash.
But we aren't being silly with it. We could have offered twice as much as Real Madrid for both Ronaldo and Kaka, but we didnt. We arent being irresponsible. We may be paying over the odds for players, but unfortunately thats what happens when other clubs know you have money.
Rafa is jealous, and worried. It we do actually manage to sign, Eto'o, Tevez and Terry they will be really scared of us. But, it's a big if. It seems to have gona all quiet on Tevez (hopefully thats cos there are things happening in the background) Eto's is reportedly awaiting a call from Mau U (tho they cant match what we can pay) and for some reason I just cant see Terry leaving Chelski. Mind you, maybe his mate Wayne Bridge has had a little word in his ear. Time will tell. We were certainly buy a few more players before the start of the season and as always it is going to be interesting, but Rafa would be advised to keep his thoughts to himself, as what our club decides to spend on players is none of his business
bluejedi (09/07/2009 at 16:35)
Gilly, Belgium (09/07/2009 at 16:35)
Power to The People, Blackley (09/07/2009 at 16:36)