Blackwell refused to join furious Leeds fans in slamming England striker Smith’s move to Pennine rivals Manchester United.
Blackwell said: "Alan is going to be a big loss. But if I can bring players in here who have the same attitude as Smithy, then it won’t be long before we are successful again.
"If money had been his motivation he would have gone elsewhere because there were other clubs offering bigger wages."
Blackwell is more than aware that he will have to mastermind a Leeds revival by signing players on the cheap.
He admitted: "We have to face up to the fact we are not big-time Charlies anymore. People have told me I’m bonkers to take it on because of all the problems there are here but there were a lot of other managers interested in this post.
"With a little bit of luck and the right signings, we could make it to the play-offs next season."