Graeme Souness slammed Arsenal for going backwards since the Arsene Wenger days and criticised the Gunners hierarchy for not showing the ambition that a big club needs to have.
The north Londoners go into Sunday's Premier League tie with Leeds in 11th place and are struggling to better last season's eighth-placed finish which saw Unai Emery replaced by Mikel Arteta in the middle of the campaign.
Souness hit out at current manager Arteta for not giving Arsenal the lift they need as the Gunners looks set for another mid-table season.
When asked about Arsenal, the Sky Sports pundit said: 'I don't pay a lot of attention to them. That says everything.
'Arsenal are of one of the big clubs historically and right now they're mid-table and appear to be going nowhere. That's how I'd describe them.
'It's upsetting for Arsenal fans, I don't see any lift or improvement since the new manager arrived. We talk about giving managers time, it looks like he's got some credit and goodwill in the bank after winning the FA Cup.
'Right now they're treading water, not going one way or another. Unless there's a real change in form they'll be in mid-table come the end of the season.'
In and amongst Souness' was an attack on the Arsenal board, led by owner Stan Kroenke, for failing to build on the groundwork made by former boss Wenger who left the club in 2018.
The French boss orchestrated the club's move from their old Highbury ground to the Emirates Stadium in 2006, the season after the side reached the Champions League final.
Souness claims the quality of Arsenal's players have dropped massively since then and hit out at Kroenke for failing to 'have a go' at turning the club into a great team.
He added: 'Arsenal made that jump, the move from Highbury to the Emirates, to be one of the big clubs on the world stage. They've gone backwards, the quality of players they have, their potential to win trophies, they're nowhere near it.
'They are in the greatest city in the world, you would think the owner would have a real go. We're not seeing that.
'Supporters must be pulling their hair out. We should be thinking of Arsenal as a top six, top eight team in world football. It's a classic case of mismanagement. I'm talking about above the manager.'
Fellow pundit Jimmy Floyd Hasselbaink claimed that Arteta's Arsenal needs the proper backing from the board or they will fail to see improvements in their side/
The former Chelsea and Leeds striker claimed the Gunners were continuing their freefall despite possessing a strong financial footing.
Hasselbaink told Sky: 'The board has a big decision to make - are you going to back your manager and give him some funds to strengthen and be the Arsenal that I knew since I came into this country? Or are you going to stay like this? If they do (the latter) they will stay where they are now.
'I don't know how they are going to get in the European or Champions League places. They just don't have the squad for it. It's not the Arsenal I used to know.
'That's the disappointment, you have one of the world's wealthiest owners and they are not really giving Arteta the funds. It's not like they're a club that is having financial troubles.
'Apparently they are making money every year. You want to have a competitive squad at the moment, I don't think they have that.'