City broke their transfer record for a second year in succession when they signed Atletico Madrid midfielder Rodri for €70 million (£62.5 million) in July. Klopp later listed City as one of four clubs whom he thinks can afford to consistently spend vast sums, while Liverpool think about how to "pay the bills."
Guardiola spoke to the press ahead of Sunday's Community Shield clash against Liverpool and hit back at Klopp's remarks, appearing to suggest his opposite number was lowering the Reds' profile:
"Does it bother me? Of course it bothers me, because it's not true that we spent £200 million every transfer market.
"It's Liverpool, 'You'll Never Walk Alone.' It's not a small team. It's Liverpool. Of course, I don't like it because it's not true. Last season we spent £17 million—one seven—on just one player.
"When I said two seasons ago I spent a lot, it's because I took over a team with 10 or 11 players over 30-years, so I had to do it. We cannot spend £200 million every season."
He added: "Like, for example, Liverpool spent more than £200 million last season. They cannot do it this season. We bought one player and Angelino on a buy-back clause."
Liverpool's total spend last season—including summer and winter transfer windows—was actually around £160 million. Granted they only sold a little more than £30 million in players, but the club was also still enjoying a windfall from Philippe Coutinho's £105 million sale to Barcelona in January 2018.
The Daily Mail's Dominic King defended Klopp's comments as a remark upon Liverpool's own limitations, rather than any kind of criticism against City:
Dominic King @DominicKing_DM
Klopp jibe? Let’s not let the clicks stand in the way of what he actually said. The point he emphasised - and which was reported - was about Liverpool’s spending and how there was no criticism of Manchester City. But, hey, let’s crack on before a ball has even been kicked. https://t.co/YhqHXjl560
City have been referred to UEFA's financial fair play disciplinary body in regards to their spending, and it was reported in June that their appeal to the Court of Arbitration for Sport is likely to fail.
"Today the clubs cannot spend every single season a lot of money. I don't know what happened at Barcelona because I'm not there. If they think they can do it, it's because they can do it.
"That's why financial fair play, when something is wrong and the clubs are not correct, they are punished. That is the reality. Other managers can say what they say but I can only say that is not true."
Both Klopp and Guardiola earned nominations to be named FIFA's Best Men's Coach for 2019, per BT Sport:
Transfermarkt recently published a season-by-season breakdown of every current Premier League club's spending from the past five campaigns, up to and including this summer. City's net spend in that period is £565 million—at least £140 million more than any other club—while Liverpool's is £115 million.
It's also uncertain what Guardiola meant when he said City spent £17 million last season. The Citizens broke their then-transfer record to sign Riyad Mahrez from Leicester City for £60 million—they made a net profit of around £7 million over the course of the season.
The City coach went on to say his squad is almost fully stocked ahead of Sunday's trip to Wembley Stadium:
Liverpool have begun to spend larger sums of late but still come second to City in player investment over recent years, with the Reds yet to complete a major signing this summer.
His rivalry with Klopp appears alive and well leading up to the Community Shield, when the Premier League kingpins will take on UEFA Champions League winners Liverpool in London.