Albion have lost out to last season's promotion rivals Reading in a bid to sign Brighton-born defender Steve Brown.
The Seagulls tried to land the former Charlton stalwart on a free transfer, with the offer of a two-and-a-half -year contract, to bolster their chances of staying in the First Division.
Brown plumped for the same length of deal with play-off chasing Reading, because the wages they offered him were substantially higher.
Brown was a target at the start of the season for former Albion manager Martin Hinshelwood.
Charlton chief and ex-Seagull Alan Curbishley was reluctant to let the 30-year-old go at that stage, but Brown has now moved to the Madejski Stadium after 14 years and well over 200 League apearances for the Premiership Addicks.
Albion boss Steve Coppell revealed: "We were in for Steve Brown and we were in competition with Reading. We made what was our best offer, but realistically it was not in touch with the Reading offer.
"He 's a local boy, he wanted to play for Brighton, but the difference was significant enough for him to opt to play for Reading which is disappointing from our point of view.
"It's a fact of our footballing life. Our income levels are cast in stone because of the ground situation.
"The gap between what we could offer him and what Reading offered was just too large for him to play his football at Brighton for less money. It was such a signifcant difference."
Coppell believes Brown would have made a big difference to Albion's fight against relegation and to their long-term survival prospects.
"I think against Leicester last Friday it showed that just that extra physical presence at the back would certainly make us a harder outfit to beat," added Coppell.
"I can't blame Steve, but it's an indication we are actively still trying to bring people in to make us better.
"It wouldn't have been a panic signing, a knee-jerk reaction to our situation. It would have been a signing for two-and-a-half years and he would have been a big aid during that time."
Coppell has been dealt a further defensive blow. Dean Blackwell has suffered a setback in his rehabilitation from hamstring trouble and he was unable to train yesterday.
Captain Danny Cullip (knee) and midfielder Steve Sidwell (leg) did train and they should be fit for the Boxing Day visit to fourth-placed Norwich.
Comments: Our rules
We want our comments to be a lively and valuable part of our community - a place where readers can debate and engage with the most important local issues. The ability to comment on our stories is a privilege, not a right, however, and that privilege may be withdrawn if it is abused or misused.
Please report any comments that break our rules.
Read the rules hereComments are closed on this article