Thierry Henry's fears well grounded as Arsenal beat humiliating transfer retreat

There were enough alarm bells ringing at Emirates Stadium on Sunday to comprise an orchestra, but one of the loudest came away from the pitch and in the Sky Sports studio, where Thierry Henry was watching his old side collapse and concede four goals in 18 minutes to Liverpool in their first Premier League match of the season.

"The thing I don't understand is, we've been told that Arsenal are wealthy, that we have money, that we can compete against anyone in the market," Henry told Sky Sports as he grasped desperately to find the reason for another disappointing start to a campaign for Arsene Wenger. "But when the season starts, we can't compete in the market. So which one is it? I just don't understand.

"Are Arsenal still the first choice in England? If a big player becomes available on the market, first of all, can you compete? Can you put the money on the table? Next, is the money stupid? We all know the money is stupid but you have to pay. And finally does the player want to come to Arsenal? That's something we all need to take into consideration. So are we still the first-choice in England? I don't think so."

It is debatable whether Arsenal were ever really the first choice in England; perhaps they were in the brief juncture between their early 2000s supremacy under Wenger and the arrival of Roman Abramovich at Chelsea, not that Wenger ever seemed particularly keen on exercising that particular set of muscles. Still, Henry’s concern that Arsenal no longer possess the pulling power of old is undoubtedly correct. For proof, you need only look to their opponents this coming weekend: Leicester City, led up front by Jamie Vardy.

It still feels like news from a parallel universe that a 29-year-old Leicester forward with two seasons of top-flight experience turned down a move to Arsenal. But Vardy’s decision to stay loyal to the new Premier League champions told an uncomfortable truth about his suitors.

In a summer when Manchester United and Jose Mourinho have attracted the most expensive player in history, Paul Pogba, and the most in-demand free agent of this or any other summer, Zlatan Ibrahimovic, despite a campaign in the Europa League, the stark reality is that Arsenal’s three signings have hailed from Borussia Monchengladbach, Bolton and Sanfrecce Hiroshima.

A bulky £35m fee for Granit Xhaka only partially masks the fact that he was not exactly one of Europe’s leading stars. Talk of interest in players such as Gonzalo Higuain has generated website clicks but nothing of substance and even the pursuit of Shkodran Mustafi, which appeared to be nearing a close, is now under threat following fresh reports that Liverpool have made a rival offer and may yet sign the Germany international.

It was not supposed to be like this. As Henry alluded to, once Arsenal had paid off the new stadium the move to the Emirates was supposed to be their ticket to join the football superpowers of Europe. Just three years ago, chief executive Ivan Gazidis giddly told supporters: “This year we are beginning to see something we have been planning for some time, which is the escalation in our financial firepower. It means we can look at some options that weren’t really in our financial capability. We should be able to compete at a level like a club such as Bayern Munich. I’m not saying we are there by any means but this whole journey over the past 10 years really has been with that goal in mind.

“It really is time now for us to turn that into sporting success. We have a certain amount of money which we’ve held in reserve. We also have new revenue streams coming on board and all of these things mean we can do some things which would excite you. We are moving into a new phase where, if we make our decisions well, we can compete with any club in the world."

Inside three months Arsenal had signed Mesut Ozil from Real Madrid for £42.5m; 12 months later it was Alexis Sanchez from Barcelona for £30m. But just as the transfer market has really exploded, Arsenal have quietly abandoned their project of largesse. Now the tune from the top is completely different.

"Leicester identified players from the French second division, so maybe there's talent that we've been overlooking," said Gazidis to ESPNFC recently. "They did their talent identification [well], they had great unity within the group, as well as quality. We're making progress in what is a fiercely competitive world, against competitors that have the capability to spend far more money than we do. We're doing it by being very, very disciplined; spending money where we believe it makes a difference, but also giving young players a chance and believing in ourselves and our values."

It represents a dramatic and humiliating retreat.

Arsenal arguably have an advantage that no other club in world football can match. Not only do they play in the richest league in the world, where even the team which finishes bottom will gain almost £100m in prize money this season, they occupy a prized location in North London and boast a training ground located in salubrious Hertfordshire. It is a compelling pitch to prospective new signings.

At the same time as possessing these important pull factors, they also have the biggest match-day revenue in England and huge cash reserves. Everything is set up for Arsenal to be big players in the transfer market, and yet they cannot sign Jamie Vardy or, it seems, many other big names.

Maybe it is Arsene Wenger’s innate conservatism and belief that he has to treat the club’s money as if it were his own; maybe it is Stan Kroenke’s influence from afar; maybe it is a recognition on the part of potential targets that there are other clubs with greater ambition out there.

Whatever the reason, Henry was surely right to sound his note of alarm on Sky. And when even Wenger’s greatest ever signing is voicing his public concerns about the club’s ability to attract new stars it only deepens the concern about their power in the hyperinflated transfer market football finds itself in.