ARSENAL 'TRANSFER SITUATION AS CORONAVIRUS AND PL SUSPENSION HIT FINANCES'

Mikel Arteta bids to begin an Arsenal overhaul this summer, but the Gunners face a testing time as they battle against the effects of the coronavirus.

Head of football Raul Sanllehi told staff on a conference call last week that budgets would be tight for the summer and it would be highly unlikely for any major deals at the Emirates.

The uncertainty surrounding the Premier League is playing its part.

They posted losses of almost £30million last year and a number of income streams have now stopped. The club’s £240million annual wage bill represents 60 percent of turnover.

Already the playing squad have accepted a 12.5 percent pay cut to help matters. Club execs have taken cuts of more than a third of their annual salaries too.

And Arsenal have been warned they stand to lose huge sums in revenue if the Premier League stage matches behind closed doors next season.

The Arsenal Supporters' Trust (AST) reported in their findings that the club's finances would be £144million worse off as a result - even with income from European competition and broadcast agreements.

They are far from certain of being in Europe in the 2020-21 campaign however; Arsenal are keen to play the remainder of the current season, provided it is safe to do so, but currently sit outside of the European places.

With UEFA wanting next season’s participants in European competition to have earned their places via “sporting merit” Arsenal’s club co-efficient and 20-plus years of successive action on the continent means little.

Boss Arteta wants to strengthen and there has been genuine interest in Atletico Madrid's Thomas Partey, but that deal looks impossible with the Spanish club wanting his £43million release clause paid - unless he signs a new deal - which is completely out of budget.

Arsenal have also been monitoring Reims defender Axel Disasi and RB Leipzig’s Dayot Upamecano; like Partey, the latter would be too expensive, with the German side valuing him at over £50million.

Arsenal owner Stan Kroenke effectively underwrote last summer's spending, and his guarantees allowed more financial freedom.

But now budgets are tight, and the club faces paying the next instalment on club-record signing Nicolas Pepe too.

Pepe’s transfer was worth £72million, but only £20million went to Lille up front, with another £13million due this summer.

A deal for William Saliba has already been done, and the next instalment on that will need paying to Saint-Etienne.

He arrives and adds to a playing squad where the fat needs to be trimmed. As Arteta looks to make his mark, a number of players are likely to be cut.

Mirror Sport revealed on Sunday that negotiations have already begun to turn Henrikh Mkhitaryan’s loan at Roma permanent. Arsenal want £10million, but Roma are looking to pay less.

Bukayo Saka’s rise and Kieran Tierney’s return to fitness mean Sead Kolasinac could go if the right offer comes in - provided Saka can be persuaded to ink a new deal. Shkodran Mustafi and Sokratis are both available if the price is right while Matteo Guendouzi is not as secure under Arteta as under Unai Emery.

The question is whether there is a market for any of them?

Alexandre Lacazette represents perhaps the club’s most valuable dispensable asset - at times Arteta has preferred Eddie Nketiah - and Atletico Madrid have previously been linked.

Mesut Ozil is back in favour under Arteta, but has only one year left on his contract. Yet the German shows little willingness in departing early, even if an offer was forthcoming.

Decisions have to be made on loanees Dani Ceballos, Pablo Mari and Cedric Soares, the latter pair available for £8million and nothing respectively.

But the biggest decision of all relates to captain Pierre-Emerick Aubameyang.

The top scorer has only one year left on his deal in north London and is keen to play in the Champions League. Barcelona and Inter Milan are both keen, despite their own issues.

Arsenal are in no position to be allowing a £50-60m player leave for nothing in 14 months time, however the Gabonese hitman is their most likely route to on-pitch success.

While football may have shut down on the field, the difficult decisions behind the scenes don't only extend to when the game begins again.