Arsene Wenger believes it would make a "joke" of Financial Fair Play if Real Madrid paid £105million for Gareth Bale.
Spurs have no intention of selling their star man but the Spanish giants are said to be ready to test that resolve with what would be a world-record fee.
Wenger feels such figures would go completely against the new UEFA-driven regulations aimed at making sure all clubs balance the books.
"It makes a joke of it. It's quite amazing that in the year where the Financial Fair Play comes in, the football world has gone completely crazy," said the Arsenal manager, who has yet to make a marquee summer signing despite having significant funds available.
"You wonder what kind of impact and effect it has on the football world. It looks like it has made everybody worse than before."
Despite the fierce rivalry between the two north London clubs, Wenger would not like to see Bale - whose stellar performances earned him the Professional Footballers' Association Player of the Year and Football Writers' Association Footballer of the Year accolades last season - leave the Barclays Premier League.
"It is never good to lose a big player," the Gunners boss added.
"He is a British player and I believe it is important that the Premier League keeps the best players."