It is a lot of money, but, and this is very blunt and no doubt part of what is wrong in football right now...but the club can more than afford it (staying away from the debt issue).
We still have the lowest wage/turnover ratio in the league by some distance and probably one of the lowest across Europe too. The club makes this money and the players are going to ask for it. It's business. By and large I think we get these decisions right, we pay much less than most other and get as good or better results.
I'd rather pay him £75k a week than have him leave for free. Ideally you renew with more than a year left as we always do, in this instance we didn't know he was good enough for the first team until just this season.