George Graham believes that Arsenal may have to end up fighting to remain in the top six, let alone the top four in the years to come.
The Gunners finished fourth in the Premier League last season, and now have to play a qualifier to make their way to the group stages of the Champions League.
And the former boss believes that the lack of silverware, rigid wage structure and the considerably less spending on big players means that the north London outfit could struggle to keep up with the rest of the pack in the coming years.
"The simple fact is that Arsenal could well be facing, in the next few years, the prospect of a battle to stay in the top six rather than the top four finish that Arsene has brought them – against the financial odds – every year," Graham said, according to The Mirror.
"To compete for the title this year is going to be a huge task.
"You look at what Manchester United and Manchester City have spent already and what Chelsea are capable of spending.
"There is the prospect that Arsenal could be in the same kind of bracket as Everton and Aston Villa.
"The best players will naturally congregate at the most successful clubs. That is just common sense.
"And those clubs will pay wages that Arsenal cannot match and pay fees that Arsenal cannot lay out."
However, Graham insists that this is not a reflection on current boss Arsene Wenger, who he holds in high regard.
"Don’t get me wrong, I think that Arsene has done a fantastic job at the club.
"If you look at the money he has spent and the money he has re-couped in his time as manager, his achievements have been little short of remarkable.
"But the whole financial scene has changed now. He used to basically have the French market to himself because of his knowledge and contacts. He hasn’t now. Other clubs have caught up.
"And there are three clubs now who can pay high fees and high wages – higher fees and higher wages than Arsenal. That restricts him.
"He has still managed to keep the club in the Champions League places every year and that is some record.
"But when it comes to finance the likes of Chelsea, Manchester United and Manchester City now have more cash at their disposal and when it comes to fees and wages, Arsene – and Arsenal – cannot compete. That is the reality."