Graham does not believe Arsenal have the quality to make a serious challenge for the title and told the Daily Mail: "There are a lot of questions hanging over Arsenal apart from the captaincy. I think Arsene has problems that he's not had in his 12 years in charge until now.
"Do they have money to buy players? Are they going to buy in the transfer window? Are they physically and mentally strong enough? They're a nice team who can play good football but do they have the consistency to make a serious challenge for the title? I don't think so.
Graham also remarked: "It's no secret that there isn't a natural captain at the club. A lot of people were surprised when William Gallas got the job at the beginning of the season.
"That didn't work out and then it was given to young [Cesc] Fabregas who was the obvious choice but has a long-term injury. They do have a problem. Arsenal have had players with natural leadership qualities like Patrick Vieira, Tony Adams and Frank McLintock. There isn't an obvious choice now.
"But Arsenal need leadership throughout the team, not just with the captaincy."