Report: Arsenal investigating whether they overpaid for Pepe

Arsenal have launched an internal investigation to examine if they overpaid for club-record signing Nicolas Pepe last summer, James Olley of ESPN FC reports.

The Ivorian winger joined the Gunners from Lille in a transfer that reportedly cost the Premier League side £72 million. He ended his first season in England with eight goals and 10 assists.

In an effort to streamline and improve operations, the club is revisiting how the deal came to fruition just days after the recruitment department was overhauled, which resulted in the dismissal of numerous scouts.

Arsenal reportedly don't regret signing Pepe even though the 25-year-old struggled at various times throughout his debut season in north London.

However, Arsenal are eager to review the scouting reports and negotiating process that resulted in the club - which has a reputation for being cautious with its finances - paying a fee that surprised people within the sport, Olley reports.

It's understood that officials at other clubs who were involved in discussions with Lille last summer were taken aback when they discovered how much money the Gunners had agreed to pay the Ligue 1 club.

Technical director Edu is believed to have spearheaded the overhaul of the recruitment department, as he prefers data-driven analysis and developing relationships with key agents.

News of the investigation comes just over a week after Arsenal announced they planned to cut 55 jobs due to financial constraints caused by the coronavirus pandemic.