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Because, until then, Arsenal insisted he wasn't for sale. by tex29

City informally offered £50 million at the beginning of the window. Wenger told them to stick it. Earlier this week, (after Arsenal finally accepted that Sanchez would not re-sign or agree to go to a team other than City) Arsenal told City it would be open to a deal at the right price. City formally offered £50 million. Arsenal rejected it and asked for Sterling. City declined to give him up. Arsenal indicated it would be willing to take £60 million. City offered, and Arsenal accepted, with the understanding it was going to sign Lemar as a replacement.

Arsenal agreed a fee with Monaco, but didn't pre-negotiate with Lemar, apparently. So when he said, "thanks, but no thanks," Arsenal backed out of its agreement with City. Meanwhile, Sanchez had agreed to terms with City, and had apparently told his Chile teammates he was a City player. So Sanchez feels like Arsenal dicked him around, and it did (although I don't have too much sympathy for him).

Just an absolute cluster all around.