Wenger: I've no reason to be pessimistic

His record fee remains the £13million paid to Bordeaux for Sylvain Wiltord three years ago - mere roubles alongside the Abramovich fortune Chelsea have invested this summer. Did he envy Claudio Ranieri?

Wenger replied: "It's like life.

Either you try to make the best of what you have in your life or you always envy other people and are never happy.

"Ideally, I wish the club had more money because we could build a new stadium without depending on the banks. But, player-wise, I'm happy with what I have.

"As for Chelsea's spending, it's a good thing if it gets the market moving again. But I think it has created the wrong impression.

"The reality is that the market is weak. The money they've spent in recent weeks doesn't reflect the true state of the market.

"It does, though, make them realistic challengers for the big trophies. But, in truth, they were already close."

Wenger ranks Chelsea alongside Liverpool, Newcastle and Manchester United as Arsenal's main rivals this season.

I asked him if he felt that the sale of the England captain to Real Madrid would weaken Manchester United.

"Not significantly," he replied, adding that he felt Beckham's departure after nine seasons in the Old Trafford first team might be no more than "a disturbance".

He explained: "They lose his football qualities, of course, but he was also one of the hard core of youngsters who developed together from the youth squad.

"That little group has been one of their big strengths over the years and now one of the key figures has gone. That could be detrimental to team spirit.

"But, given the chance, I'd have signed him because he's a great player. As a coach making a football decision, you'd sign him.

"But I find all the rest of the hype just rubbish, personally. It's fantastic that football is so popular but it saddens me that 'image' has become so important.

"The real values in football concern how well you play on the pitch, not how many shirts you sell."

Nonetheless, Wenger has been forced to confront the harsh reality of the Highbury balance sheet this summer. The financial problems of the £400m Ashburton Grove development have seriously restricted his summer transfer activity.

He's been able to buy a £1.5m replacement for David Seaman - Jens Lehmann from Borussia Dortmund - and has spent a further £1m on teenage defenders Philippe Senderos from FC Servette and Gael Clichy from Cannes.

"I bear some of the responsibility for the stadium decision, because I pushed the club to build a new ground," he said. "I believe it was the right decision and I won't change my mind on that because I think there's huge potential at Arsenal that is unexplored. But only time will tell if we are right.

"I want future managers to be in a position where they can compete financially with Manchester United and now, of course, Chelsea. We compete with Manchester United now because we have been shrewd and made good buys. But that may not last. That cannot be the basis for a policy for the future of the club."

With money so short, the immediate future rests with those currently under contract - Wenger remains convinced that Vieira will sign a new deal - and a handful of outstanding youngsters now emerging from Liam Brady's youth academy.

These include Ryan Garry, David Bentley, Justin Hoyte, Moritz Volz - who has joined Fulham on loan - Jeremie Alladiere, Sebastian Svard and Jermaine Pennant.

Ashley Cole apart, graduates from the youth system have barely had a look-in during the Wenger reign. "We've been patient, nursed them along carefully and now we have some outstanding young players," he said. "At the right time they'll be challenging for first-team places this season." Wenger hopes that two of his summer signings, Lehmann and Senderos, can reinforce a defence that fell below Arsenal's usual high standard last season.

When you compare the 42 goals conceded to the 17 shipped in 1998-99, you understand where it went wrong for Arsenal. "Forty-two goals is too many," Wenger said. "Going forward, we were the best team by miles, but defensively we were bad. I wasn't happy with our defending. We need to improve. I'm ready to change the defence if I think it needs to be done.

"But I'm a strong believer in the spirit of my players and the vision we have of how the game should be played. What matters is how we play on the pitch and I know we are good enough to play well and challenge again for the Premiership and the Champions League."

Wenger has two seasons remaining on his contract and, like Ferguson, can't see a future without the buzz of English football. "What's most important in English football is what happens on the pitch," he smiled. "Nothing else matters much. That's why I stay."

Could he envisage leaving Arsenal in the foreseeable future? "Not really," he answered. "This is my seventh full season, the longest I've been with any club. Arsenal is a special club and has a special vision of how football should be. I want to contribute to that vision and push the club forward."