Arsenal transfer mistake could cost £42m after being told Pepe's value has plummeted

Paul Merson reckons Arsenal flop Nicolas Pepe has more than HALVED in value since they signed him for £72m.

And the Gunners great, who won five major trophies with the club in his playing days, believes talk of Pepe finally living up to his potential this season is premature.

Pepe came off the bench to score and help Arsenal to a massive comeback win over top-four rivals Wolves last week.