Arsenal chose to pass on a deal for N'Golo Kante because of 'extreme' agent fees.
The French midfielder instead left for Leicester for Chelsea in 2016 for a fee of £32m, and it was later revealed in Football Leaks that the two agents who brokered the deal earned a combined £10.6m.
This forced Arsenal move onto other targets, with the club eventually paying £35m to Borussia Monchengladbach for Granit Xhaka.
Talking to the The Athletic, former Gunners negotiator Dick Law said of the Kante deal: 'When things reached an extreme, we tended to back away."
Law also confirmed Jamie Vardy rejected a move to the Emirates after meeting with Arsene Wenger.
"The deal with Leicester was done, the deal with the player was done," said Law.
"He came down to visit with his wife Rebekah, he sat on the couch in front of Arsene… and then he backed off.
"On his way back to Leicester I get a call from the player saying he wants to think about it overnight. 'At that point, you know it's bad news."