It wasn't false. You're saying that previous moves could have created more space, but that's always true. Based on their salary structure at the time free agency began, they offered the most possible.
This is a worthwhile distinction because you're conflating two different things: Pritchard's choice to retain Blake and Outlaw and his "ability to negotiate" with free agents. If you don't like his choice to retain Outlaw, fine. But that has nothing to do with whether he knows how to "deal with free agents." He offered as much as he could (which takes into account all past moves) which was already an overpay, rolled out the red carpet and Turk still chose to go elsewhere. This doesn't, in any way, suggest to me that Pritchard failed in some meaningful way when it came to trying to sign Turkoglu. It suggests that free agency is unpredictable because you can't control the choices of the free agents themselves.