Arsenal, like many teams in England, are struggling financially due to the coronavirus pandemic.
The Gunners, according to the Mirror, lost £27.1m last year.
That was before the coronavirus put a halt to English football, meaning they are set to lose even more in 2020.
To minimise their losses, Arsenal have been trying to get their players to take a pay cut.
Players of the north London club were warned that the club is 'in a very grave situation' financially.
According to the Telegraph, A proposal was made asking squad members to take a pay cut of 12.5% between April 2020 - March 2021.
With the wage bill currently at £230 million, it was hoped that the players would accept the demands and save the club £25m-per-year.
There were incentives for the players, too.
The proposal included an incentive which meant any player who was offered and signed a new deal in the future would be awarded the deducted balance in addition to his new salary.
Another incentive was that any player sold after the virus has subsided would receive their wage cut back in full.
Players held a vote on Monday but they decided to reject the club's proposal.
They weren't swayed by the incentives as they didn't anticipate much movement in the upcoming transfer market.
That means Mesut Ozil will continue to earn £350,000-per-week, while Pierre-Emerick Aubameyang and Alexandre Lacazette will still pick up £200,000-per-week.
Former Premier League player Stan Collymore has defended Arsenal's players for rejecting the proposal.
“If Arsenal’s players had shown in the Premier League these past five or six years the sort of fight they’re showing in their wage battle with the club then they might actually have won one,” Collymore wrote in his Mirror Sport column.
“They’re displaying Champions League-level unity in their discussions around potential wage cuts or deferrals, which isn’t something we’ve said about them on the pitch for some time.
“To be fair to them, though, they are absolutely right to say they won’t accept a pay cut that will only become a deferral if they qualify for Europe, because the club shouldn’t be moving the goalposts now on contracts that were signed in good faith.”