It pretty much is in realistic terms.
We have a revenue over 400m without counting the sales of players, which will get further increased next season by the new EPL deal. Our wage bill is around 40% of the revenue. Add 20m of debt and other expenses and we are still talking for 150-200m pounds which we can spend each year. With Hernandez's sale our net spent is around -10m, so it is quite possible that we can spend 200m on transfers right now, and do the same next season.
The problem isn't that we're paying a lot of money, but more could that money have been spent in other players? Probably even that doesn't mean anything, considering that there is money to be spend on other players.