It wouldn't matter if both Real and City pull out of the race to sign Aguero. The way I see it, we simply pulled out of the race because of the asking price and his high wages.
You have to look at it from an economic point of view.
Rumors says that Atletico wants €45M and Aguero wants €7M a year. On the other hand Villareal wants around €30M and Rossi would get €3.5M a year.
That means, that over a 5 year contract period, Aguero would cost us between €45-50M more than Rossi. Is Aguero that much better than Rossi? No fucking way.