Arsenals issue is wages, and increasing wages more than spending power, and Wengers pretty idiotic "it doesn't count if I spend more than 17p " ideas.
Problem is, we're probably paying Djourou 30k a week or more now, Denilson, Diaby probably on 40k + by now, Gallas was a huge wage earner, though had experience no one else offered. Almunia will be on a decent wage now, Rosicky, Eduardo, Vela, Bendtner, RVP on a very high wage, Theo on a VERY high wage considering his utter crapness and most of those guys barely ever play. Wengers reluctant to get rid of players he doesn't use and replace them with "work horse" players who aren't "potentials" and don't take a huge wage.
I really like Rosicky, he hasn't shown his first year form, and frankly we've wasted what must be 10mil + on him by now, Vela's wage is being racked up for a guy that doesn't play, Diaby, Denilson, Song I just don't understand at all, we need to sell Song and add his wages towards a proper DM, sell Theo and Rosicky, buy a single actual winger who isn't always injured and will cost half the wages of those two together yet could provide the team with more games a season than both combined.
We're wasting what cash we do spend on wages. Chelsea don't seem scared of offloading anyone they think isn't worth the wages, and its bringing down their losses dramatically compared to 3-4 years ago, yet they are still winning things. Pay players you play, get rid of those you don't.
The amount of youth players we have on 2-10k a week is far far higher than any other club in the league and that add's up, so far 2-3 have come through, the vast majority we get at 17-18 almost ready for the first team. The problem is how many 17-22 year old players who clearly aren't close to good enough who take up millions upon millions a year all together, rather than ditch them. Simpson, the Hoytes, Djourou, Randall and 80% of our youths clearly have no future at the club, we could ditch them all and be able to afford 3-4 actual starters that could be the difference between 4th winning the league.