Manchester United beat Real Madrid and Arsenal in the process when they successfully secured the signature of Falcao, according to his father Radamel Garcia.
The Colombian is still tied with his mother club, AS Monaco, until 2018, and just made a temporary season-long stop at Old Trafford.
"Things did not happen with Real Madrid because, if you have money and you go to the shops to buy a shirt or trousers, you have to decide if you buy it or not," the 28-year-old's father revealed.
"So Real Madrid opted not to do it and you can't do anything about that."
"Apart from that, I don't know, I have a feeling they wanted the player to offer himself as a gift with a number of conditions and things like that."
"Juventus, Manchester City, Liverpool also approached him and Arsenal at the last minute."
While it is seen as a good feat for the Red Devils in terms of finally being able to attract and land world-class players, the loan deal that reportedly cost them as much as £24million, along with Angel di Maria's purchase, is viewed as a sign of desperation from management and that it runs counter to United's philosophy of developing and spotting young talents.