"We don't buy superstars," Arsene Wenger once triumphantly declared as Arsenal manager, "we make them."
Mikel Arteta has adhered to many of the lessons he learned from Wenger over the years but the idea of holding back in the transfer market - which was an idealised view of Arsenal's approach in Wenger's latter years anyway - has not been one of them.
Before the end of June, Arsenal had already agreed to transfers worth more than the rest of the division's outlay combined.
While Liverpool have had to count the pennies in recent windows and even Todd Boehly's free-spending Chelsea have focused on outgoings before adding to their pile of lucrative assets, how have Arsenal been able to carry on buying superstars?
How much have Arsenal spend in the 2023/24 summer transfer window?
Kai Havertz was the first name officially through the door at Arsenal this summer. The club hijacked Kepa Arrizabalaga's wedding to shoot the announcement video which revealed a move from Chelsea worth up to £65m.
After two rejected bids, Arsenal have belatedly agreed to West Ham's valuation of Declan Rice for a British record fee of £105m. The last time Arsenal broke the British transfer record, Dennis Bergkamp arrived in north London for just £7.5m.
Bergkamp's compatriot Jurrien Timber is the third prong in Arsenal's onslaught of the summer market. Ajax have settled upon a package that could rise to £40.5m, taking Arsenal's total outlay to £210.5m before July. There have even been whispers of a potential bid for Southampton youngster Romeo Lavia.
On top of the new arrivals, Gabriel Martinelli, Aaron Ramsdale and Bukayo Saka have all penned hefty contract extensions this calendar year. William Saliba has agreed to a new four-year deal in principle as well.
What financial restrictions apply to Arsenal?
Wenger was originally one of the strongest advocates for Financial Fair Play (FFP) but became disillusioned by the idea when he deemed that the new rules had "not been respected" back in 2017. As recently as this year, both Manchester City and Everton have been accused of breaching the updated stipulations.
Whether Wenger holds with them or not, the latest Premier League regulations state that no club is permitted to lose more than £105m across three consecutive seasons.
Last term's second-place finish may have stung but it did ensure that Arsenal qualified for the Champions League for the first time in six years. UEFA, naturally, have their own set of economic guidelines; namely, clubs are limited to spending no more than 90% of their revenue on staff wages and agent fees. This proportion is set to shrink each year, promoting more sustainable models across Europe's elite.
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How can Arsenal afford extravagant summer spend?
Arsenal posted a loss of £107.3m at the end of the 2020/21 season and were in a deficit of £45.5m last term. Theoretically, the Gunners should have to make a profit of £47.8m this year to fall in line with the regulations but it isn't so straightforward - where's the fun in that?
The 2020/21 season still falls under the bracket of a COVID-impacted campaign (only three of Arsenal's home matches had any fans in attendance) and all losses caused by the pandemic are overlooked by the Premier League's bean counters. Furthermore, Arsenal can write off any costs relating to infrastructure, the academy or the women's team.
Not only is Arsenal's financial position far rosier than the top line numbers suggest, but the latest available set of accounts do not take into consideration the windfall set to flood the club's coffers.
On top of the increased rewards earned by jumping from fifth to second in the Premier League last season, Arsenal are now entitled to a share of the Champions League spoils. The Gunners bowed out in the Europa League round of 16 to Sporting CP in March, raking in around £30m. The club are expected to make just as much - if not considerably more - just by qualifying for Europe's premier competition, with the bonuses from sponsors and baseline competition prize money guaranteed.
Arsenal may have been extravagant with transfer fees in recent windows, but that flair has not extended to the wage bill. The Gunners spend less than half as much as Manchester City on player salaries each season. According to Capology, Arsenal only had the sixth highest wage bill in the division last term, comparable to Aston Villa and less than London rivals Chelsea and Tottenham - both of which failed to qualify for European competition.
This pay-check parsimony ensures that Arsenal are flying well below UEFA's revenue/wages threshold.
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On this edition of The Chronicles of a Gooner, part of the 90min podcast network, Harry Symeou reacts to the latest news regarding Declan Rice to Arsenal and review the Kai Havertz announcement.
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This article was originally published on 90min as How can Arsenal afford extravagant summer spend?.