I think we need to go with Arsenal strategy. First, accept the club position. We are may be 6th to 10th level club. So set similar expectations at the beginning. Go for cheaper available talent who may not be of great potential but fitter and have enough skills to keep club hanging around 6 to 7 position. This way save money for key signings. Then try finding 2-3 impact players in two seasons who can fit in the team and can improve it to 4-5 position. Repeat the cycle until you start fighting for top position.
Arsenal was barely a Top 10 club in terms of economic heft at that point, to be fair. With annual revenues of roughly €446 million, whereas the Top 3 of Barcelona, Real Madrid and Manchester United boasted revenues of roughly €841 million, €747 million and €711 million respectively. Closer to the likes of West Ham and Everton than the crème de la crème of club football, to put things into perspective. As such, their strategy through that period was largely defined by their own economic limitations (which afforded them less margin for error and less room for maneuver); them being frugal and long-suffering was circumstantial, not necessarily a matter of deliberate choice and principle.
Even as recently as last year they were barely Top 10 in terms of economic heft, trailing a sputtering, anaemic Manchester United by roughly €200 million...
Yes, we need to wise up to the fact that we're in a bit of a pickle, and every year out in the wilderness leads to further degradation of the insitution in a myriad ways (especially in comparison with clubs that were once our peer competitors in the elite rungs with regard to capabilities and intentions, like Bayern Munich and Barcelona). There's no room for denial at this stage, that much is abundantly clear. But, we should have greater expectations and a quicker hypothetical “recovery arc”, compared with Arsenal in 2019 (who went from 8th in the Premier League to title contention after 3 summer windows) or indeed
Liverpool in 2016 (who went from 8th in the Premier League to title contention and the European Cup final after 3 summer windows), simply because while the club has undoubtedly diminished in stature, it has extraordinary resources at its disposal, relative to those clubs at those junctures, even accounting for Profit & Sustainability Regulations and Financial Fair Play constraints.
Football's not that complicated, at the end of the day. A few key individuals can make all the difference, the fortunes of a club that can be categorized as an absolute economic powerhouse can be dramatically altered with just 2 summer windows of optimized recruitment and the appointment of the appropriate manager. Unfortunately, we did not make the most of the summer window gone by (with the immediate qualitative improvement of the first team in mind) and have inexplicably decided to stick with an inappropriate manager — essentially, unforced errors that have impeded our developmental trajectory for the time being.
As regards the primary topic of discussion, I'd echo what
@Chesterlestreet has to say. If the club is Top 3-5 in terms of economic heft, it
must be one of the Top 3-5 clubs in Europe in terms of sporting competitiveness, performance, entertainment value, a sense of sustained dominance, and so forth. Which translates to: earnestly and consistently competing for the Champions League and Premier League titles, regularly putting lesser opposition (for lack of a better term) to the sword and playing a somewhat entertaining brand of football, over the course of a standard season, excluding blips and outliers (which are statistical inevitabilities unless you do almost everything right, year in and year out). Anything less is undeperformance, relative to resources at Manchester United's disposal. Anything less for an appreciable period of time is chronic underperformance (heads need to roll by this point).