Grimandi, who is now the north London club's chief scout in France, also hints that Arsene Wenger was forced to resort to quantity over quality following the departures of Cesc Fabregas, Samir Nasri and Gael Clichy this summer.
French resistance: Grimandi played in Arsenal's Double-winning sides of 1998 and 2002 before becoming a scout at the club (below)
'The fans want us to bring in star names, but they don't all grasp our economic limitations,' Grimandi, 41, said.
'There are no proven big stars currently on the market. 'Besides we are not competing on a level playing field with Manchester City and Chelsea.
'Our means are limited by comparison and our pay structure prevents us going crazy when we sign players.
New recruit: Wenger signed Arteta in a ?10m deal on deadline day
'We were left with little time to act in the transfer window and we opted to pad out our squad in terms of numbers.'
Grimandi also believes Wenger's squad, which is enduring Arsenal's worst start to a domestic campaign in more than half-a-century, is too injury-prone and will be nothing more than a 'nuisance' in the race for this season's Premier League title.
Under fire: Wenger has endured a torrid start to the new season
'We have so many injuries because we keep hold of the ball more than other teams and this exposes the team to more knocks from opponents' Grimandi told the Daily Express.
'It is also because we have a lot of small-sized players, and the fact we take part in so many competitions increases risk of injury.
'We are convinced we have a good team, which can play a spoilsport role in the league this season.
'We have some quality and have to believe in our work.'
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