But Hill-Wood was confident the Gunners would mount a serious title challenge this season and insisted the board was not worried about
The Arsenal chairman also said he was 'disgusted' by those fans who abused manager Wenger last season as the club once again came up short.
Hill-Wood told the Evening Standard: "Arsene has money to spend but there's a limit. We can't spend £50 million ($77.72 million) on one player.
"At a certain level, we can't compete. I don't think [majority shareholder]
"Luckily, Arsene understands that. He got an economics degree from
"The Glasgow Rangers example is something we've all got to guard against. They spent far more money than they could afford. We're ambitious enough but we're not going to end in the same plight as Rangers. That is a fact of life. So my advice is, don't get miserable about it."
Last season saw Wenger come under more pressure than ever since he took charge 16 years ago, with some fans even heard to chant: "You don't know what you're doing".
Hill-Wood said: "What those fans shouted did not influence me one little bit. I was disgusted to hear them because Arsene's been absolutely outstanding. He is still outstanding."
This northern summer saw captain
Hill-Wood said: "We have a pretty good chance of challenging for the Premiership. I don't see why we cannot win it this year."
Arsenal's decline has been traced back by some to the departure of
Hill-Wood dismissed this, as well as any prospect of Dein being invited to return.
He also said he remained opposed to the club's second largest shareholder,
The Gunners drew their opening two league games 0-0 but got three points on the board at Anfield, as well as keeping another clean sheet.
"We've gone and done that and shown we mean business.
"Maybe people were questioning us after the first two games, but we knew in ourselves that the goals would come and we've come to Anfield, which is no easy place to pick up three points, and we've won 2-0."
Arsenal's new-found defensive resilience has been credited to former defender
Jenkinson said: "Steve has come in and he's been there and done it.
"He's always there giving us advice and tips, and we've had a long pre-season to work together and get our shape right.
"A lot of credit goes to the midfield, too.
"You need that shield in front of the back four and I think we're doing that fantastically at the moment and it's showing in our results."
English Premier League
Manchester City striker Sergio Aguero has underlined his commitment to the Premier League club by signing a one-year contract extension.