No we can't - FFP states we can't spend more then our income and our income is (relatively) bugger all and we will definitely be made an example of.
Also we could bugger ourselves up financially in the long run like Leeds.
I do agree, we haveto prepare for an average prem wage structure, think we are currently in a good place at the lower end of the leagues average, article says around £57m a year atm.
Though saying that, CL money gives us a bit of wriggle room this year, so if we were to use that to offset the wage structure in order to keep out better players, i don't see too much problem with it.
For example, if we were ok with Vardy being on £80k (his new contract) which likely takes the increase in TV revenue into account, giving him the extra £40k a week (reported £120k) would be £8m extra over 4 years. If we were to do the same with Mahrez and Kante, thats £24m they would receive extra in wages between them. Though this method may have a serious effect on the teams morale and we'd be one of those clubs that has "star players" on a fair amount more than the rest.
... i've confused myself, though in summary, i think the club has a choice ...
a) Increase current wage structure and not make any huge signings, keeping the core together, or
b) Keep the wage structure as it is, let those wanting higher wages go and put the funds into trying to lure some of the higher priced players (Musa and Slimani could cost £45m in transfer fees alone)