John Ryan claims Tommy Spurr’s wage demands were simply too high for Rovers.
The left back surprisingly opened with talks with Blackburn this week after being seemingly certain to re-sign with Doncaster following the end of his contract.
And yesterday be penned a two year deal with Blackburn.
Chairman Ryan dismissed a suggestion Rovers could have tied down Spurr to a new deal had they shown more intent earlier in the summer.
“His demands were very high,” Ryan told the Star. “We did have a deal but Tommy doesn’t come cheap.
“It’s the budget really that has restricted us. We’re a small club and we’re trying to compete with Blackburn Rovers, who have the parachute payments.
“We were told they were offering Tommy a £2m deal. How can we compete with that?”
James Husband is likely to be given the nod at left back for Rovers’ opening game of the season with Blackpool tomorrow.
But Ryan says boss Paul Dickov is in talks with two or three Premier League full backs.
Dickov said of Spurr: “We’re disappointed to lose him but wish him well.”