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Arsenal is getting closer to the signing of St. Etienne defender William Saliba.
Saliba is expected to cost about 27 million pounds, but the transfer will not affect the summer budget because gunners must pay the player fees in installments.
But Groves is not happy and says he would prefer Arsenal to pay the money if it means they do not have to lend Saliba for the next campaign.
He added that the cities of Liverpool and Manchester City could do the same with young players, because they do not desperately need to be improved.
But Groves says Arsenal needs as many players as possible.
"They're in William Saliba from Saint-Etienne, the 18th," Groves said on talkSPORT.
"It's 26 million pounds, they'll lend it to him for a season.
"Arsenal is not in that position by the time you can lend players. We need players to play now.
"If you were Liverpool or Man City, you're in that prime position, so think about next season or the next season, we need those players now.
"I know it will be phased, but I want the entire budget to be allocated to the players who will come and have an impact on our first team."
Groves can only see Arsenal in a battle for the top four in the Premier League this season.
"I know we are fighting to be even better. In fact, it is the fourth, he added.
"Manchester United is in turmoil – [manager Ole Gunnar] Solskjaer will not be good enough.
"Chelsea is in a bit of a hustle and bustle; they can not sign any player, they have Frank Lampard [as manager]and they have young players coming in.
"The fourth place will be really competitive and I want us to be competitive.
"I know it shows how much we dropped in fourth place, but we have to be realistic.
"And if they sign those younger players, hungry and with the right attitude, then as a fan of Arsenal at the end of the transfer window, I'll think," OK, we're looking to move forward " . "
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