In October 1886, Scotsman David Danskin and fifteen fellow munitions workers in Woolwich formed Dial Square Football Club, named after a workshop at the heart of the Royal Arsenal complex. Each member contributed sixpence and Danskin also added three shillings to help form the club. Dial Square played their first match on 11 December 1886 against Eastern Wanderers and won 6–0. The club was renamed to Royal Arsenal a month later, and its first home was Plumstead Common, though they spent most of their time playing at the Manor Ground. Their first trophies were the Kent Senior Cup and London Charity Cup in 1889–90 and the London Senior Cup in 1890–91; these were the only county association trophies Arsenal won during their time in South East London. In 1891, Royal Arsenal became the first London club to turn professional.

Royal Arsenal was renamed for a second time upon becoming a limited liability company in 1893. They registered their new name, Woolwich Arsenal, with The Football League when the club ascended later that year. Woolwich Arsenal was the first southern member of The Football League, starting out in the Second Division and reaching the First Division in 1904. Falling attendances, due to financial difficulties among the munitions workers and the arrival of more accessible football clubs elsewhere in the city, led the club close to bankruptcy by 1910.  Businessmen Henry Norris and William Hall became involved in the club and sought to move them elsewhere.

In 1913, soon after relegation back to the Second Division, the grandstand of Woolwich Arsenal’s Plumstead stadium was burnt down by the suffragettes, as part of their nationwide bombing and arson campaign for women’s suffrage. The attack cost £1,000 in damages (around £120,000 today), and so the same year the club moved across the river to the new Arsenal Stadium in Highbury. In 1919, The Football League controversially voted to promote The Arsenal, instead of relegated local rivals Tottenham Hotspur, into the newly enlarged First Division, despite only finishing fifth in the Second Division’s last pre-war season of 1914–15. Later that year, Arsenal started dropping “The” in official documents, gradually shifting its name for the final time towards Arsenal, as it is generally known today.

Arsenal has appeared in a number of media “firsts”. On 22 January 1927, their match at Highbury against Sheffield United was the first English League match to be broadcast live on radio. A decade later, on 16 September 1937, an exhibition match between Arsenal’s first team and the reserves was the first football match in the world to be televised live. Arsenal also featured in the first edition of the BBC’s Match of the Day, which screened highlights of their match against Liverpool at Anfield on 22 August 1964. Sky’s coverage of Arsenal’s January 2010 match against Manchester United was the first live public broadcast of a sports event on 3D television.