@PaddyG> I will answer your question, though off course only SAF and Gill know the true answer.
In my perspective, we would sign him, even if he cost 25mil if SAF believed he was good enough. We paid 18 mil pounds for a keeper (overpaid), because he was what SAF wanted him. Paid a lot of cash for Jones as well as Young and both have turned out to be quality (Youngs diving aside).
Personally I believe Utd can afford transfer fees and even paying the 30 mils and 40 mils it would take to get a Hazzard, however I don't think they can afford his personal demands. From what I understand our top player Rooney earns around 200k. Compare that to Yaya Toure, Tevez, Aguero etc earning a rumored 250k and Hazzard demanding 200k from City to begin with.
How can Utd afford to pay an unproven albeit talented player the same salary as someone like Rooney and much more than everyone else on the team. It would cause and uproar and everyone demanding more money, not to mention disharmony in the locker room.
It sucks to miss out on the top rated players, but given City's financial clout and crazy salaries, we cant compete with that. If the Financial Fair Play rules are actually implemented I cant see any way for City to actually qualify for the CL with their current setup (though expect the sheikh to do more 300 mil for renaming stadium like deals to hoodwink this FFP rules). Utd can do that, so we need to follow a stable financial policy.