Man City are only pulling out on principle -- fair enough, but it is a business; it's also a bit arrogant: 'we've got Guardiola, we're pretty much guaranteed a title, come to us for less money'; Why!? The player was thought to have made a deal with them, informally. However, if Man Utd offer more money, why would Arsenal accept a lower offer, and why would the player accept less money?
Gary Neville, on MNF, was suggesting it would cost them £100 Million anyway, with wages etc.; that's still cheap for Sanchez, even at 29, in this market.
I agree Man Utd would be a bad move; it just doesn't suit his game, playing for Mourinho.