Arsenal saw several notable changes in the transfer market. Charlie Nicholas, hardly playing, departed and defender Viv Anderson left for Manchester United. Manager George Graham looked to strengthen Arsenal's defensive options, bringing in Nigel Winterburn at left-back and later in the season, Lee Dixon at right-back. Brian Marwood was also signed in the late window as an alternative to Martin Hayes, and soon formed a good relationship with striker Alan Smith. Michael Thomas and Paul Merson, Arsenal academy products, also became first team regulars.
Near the end of the season, 21-year-old Tony Adams was named captain.
After finishing fourth in the league and winning the Football League Cup a year earlier, Arsenal slipped to finish sixth. They did reach the League Cup final for the second year in a row. Although Arsenal took a 2–1 lead against Luton Town at Wembley, Nigel Winterburn missed a penalty which would have given them a 3–1 lead, and ended up losing the game 3–2.[3] Arsenal were quarter-finalists in the FA Cup, losing to Nottingham Forest.[4]
In the league, Arsenal got off to a slow start, winning just one of their first five games, before going top of the table with a 10-match winning run. They won 14 consecutive games between 12 September and 17 November 1987, in all competitions, a club record at the time.[4]
However, Arsenal then went into freefall, winning just one of their next 11 league games. Injury to David O'Leary weakened the team's traditionally strong defense. Liverpool, the eventual league champion, easily won both their matches against Arsenal.[4] Although their form improved during the final four months of the season, Arsenal could only manage a sixth-place finish. Young midfielders Michael Thomas and Paul Merson became regular members of the first team during this season.[3] Defender Tony Adams, still only 21, succeeded Kenny Sansom as captain, on 6 March 1988 against Tottenham Hotspur at Highbury.
Arsenal had agreed an £850,000 deal for Leicester City striker Alan Smith two months before the end of the previous season, although he had remained on loan back at the East Midlands club until the end of the campaign.[5] Smith finished as Arsenal's top scorer in his first season at the club, finding the net 16 times in all competitions. Charlie Nicholas, meanwhile, fell into Arsenal obscurity. After playing in the first three matches, he exclusively featured for the reserves before being sold to Aberdeen in January of 1988.[3][4]
A new signing at the start of the season was Nigel Winterburn, who arrived from Wimbledon to fill the right-back position left vacant by the sale of Viv Anderson to Manchester United.[4] Michael Thomas started the 1987/88 season at right back but his athleticism and passing ability soon brought a move to central midfield. From January 1988 Winterburn, the left-footed defender initially had to settle for the right-back role. Later signings at the club, were defender Lee Dixon in January 1988, who started in six matches as right-back, as well as winger Brian Marwood in March 1988, who started in four before the end of the season.[3][6][7]
Arsenal were in a great run of form when they travelled to The Dell to face Southampton on 9 April 1988. Arsenal were unbeaten in eight league games and, even though they were missing Tony Adams and David O’Leary, Southampton won 4–2. All the talk was centred on Southampton's new star, Alan Shearer who, at 17 years and 240 days, and broke Jimmy Greaves’ record of the youngest player to score a hat-trick in the English top flight. It had also been 21 years since a player had scored a hat-trick on his full debut in English football.[8][9]