Other issues icluding ticket prices were also discussed.
City, in order to bring in new players, must sell first
"Up to a few days ago it would not have been in my wildest dreams to let Earnshaw go," said Hammam. "But we need four or five players in, and I can spread the money raised for Earnie across the team.
"Because of the building of the stadium, we have an agreement with the banks that in the next two years we will not increase our playing budget - which is the biggest in the Championship bar Leicester and Wolves.
"So we must raise money in other ways.
"For the first time since I came to the club four years ago, we have only a certain amount of money to spend on the team, but we need to strengthen in three or four positions.
"What I wanted to do was keep Earnie and still be able to bring in other players, but I can't do that.
"I'm devastated to sell him because I promised everyone - including myself - that I would never sell him.
"We got £3.5m for the Earnshaw sale, considering he is unproven at Premiership level I think that is a damn good fee."
Hammam also resisted calls for the head of manager Lennie Lawrence. He did though suggest there could be backroom changes.
Sam did not rule out a possible sale of Danny Gabbidon
"I would say Gabbidon will not be sold, but as we've seen with Earnie I've even ended up surprising myself.
"If someone asked me 10 days ago if I'd sell Earnie I'd have insulted them."
With Earnie gone Gabbidon will have to endure tales from the Premiership from his Welsh colleagues. If City are challenging come January then Gabbidon, who could be on the verge of the biggest contract offered in City's history, may want to stay. If he gets a chance of jumping on the Premiership express during the next transfer window, then City may be powerless to stop him.