Nathan Blake believes Cardiff City were "crazy" to accept a fee of £10m from Inter Milan for Gary Medel.
The Chile international's transfer was finalised on Saturday - a year after Cardiff paid Sevilla £11m for the player.
Ex-Cardiff striker Blake was "surprised" owner Vincent Tan did not insist on a £13m-£14m fee for Medel.
"[With] Mr Tan, being the businessman he is, [I'm] surprised that they got less than they paid," said Blake.
"You've got to get better negotiations, haven't you? It's as simple as that."
Cardiff declined to respond to Blake's comments, made on BBC Radio Wales' Call Rob Phillips show, and Inter Milan have not yet officially confirmed Medel's move.
Blake added: "If you negotiate and you're adamant that you're at least looking for £2m more than you paid for him or £3m more... whatever's happened between agent and managers and owners - how they've ended up at £10m after the World Cup, it's crazy."
|Some of Cardiff's summer signings|
|Tom Adayemi - midfielder from Birmingham for £6m|
|Javi Guerra - striker from Real Valladolid (free)|
|Guido Burgstaller - midfielder from Rapid Vienna (free)|
|Federico Macheda - striker from Manchester United (free)|
|Adam Le Fondre - striker from Reading (undisclosed)|
Ex-Wales international Blake expected some Cardiff fans to disagree with his view that Medel was one of their better players during their 2013-14 Premier League campaign which ended in relegation.
"I thought he was worth a bit more… I thought he was one of Cardiff's better players in the Premier League," said Blake.
"Obviously I'm not surprised [at the move] - I'm surprised just at the price tag, really.
"I thought he had a decent World Cup and some Cardiff fans will agree or disagree - I think he had a decent season as well.
"So [I'm] not surprised that he's gone. I think there were two or three players who were always going to leave if Cardiff got relegated and he was just one of them, unfortunately."
Medel made 34 Premier League appearances in midfield for Cardiff and went in to impress at the World Cup in a defensive role as Chile reached the second round before losing to hosts Brazil on penalties.
Medel is the fourth major departure from the Bluebirds during the close season.
But he has brought in midfielder Tom Adeyemi from Birmingham to help plug the gap created by Mutch's exit.
Norwegian Solskjaer is keen to sign "at least one" central defender.
Cardiff were linked with Bordeaux's Senegal international Lamine Sane while Medel's departure was being negotiated.