Still, Pearce is happy the board have been upfront about what he has at his disposal and he feels he already has a good squad to start with.
"There's no money to spend on players," he told Sky Sports News. That's what I've been told.
"I'll work with that and I'll have to wheel and deal. I think I've got a head start as I've got a good set of players here at the moment at this football club.
"It's important that I get the best out of them and maybe bring 1 or 2 in to add to what we've got."
Kevin Keegan spent just £100,000 last summer to sign Ben Thatcher, which hasn't stopped Pearce leading the side to the brink of a UEFA Cup spot this season.