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Chapman reformed many of the club's practices, including modernising the training and physiotherapy regimes, adding numbers to the players' shirts, and changing the team's colours, adding white sleeves to the red shirt. It was also during Chapman's era that the club lost the definite article from its name, becoming just "Arsenal", and he was reportedly behind the renaming of the local Tube station, Gillespie Road, to Arsenal. At the same time, Chapman had a large transfer budget by virtue of Arsenal's improved revenue from their new stadium and a change of heart from Henry Norris; previously a highly prudent chairman, Norris now dictated that there was to be lavish spending.
Chapman's first signing was veteran Charlie Buchan from Sunderland; as well as his contributions on the pitch, Buchan would play an important part off it. After Arsenal had been given a 7-0 hiding by Newcastle United in October 1925, Buchan suggested a change to the formation to adapt to a relaxation of the offside law, rejigging Arsenal's formation to the "WM", strengthening the defence by pushing the centre half back into defence and the full-backs out to the wings. Over time, Chapman developed the formation further, putting an emphasis on a pacy forward line, wingers cutting inside, and the role of a creative ball-playing midfielder. Chapman's adeptness at picking the right man for the job proved vital, as he slowly built a team capable of dominating the game in England.
Arsenal came second in Chapman's first season (their best ever finish at that time), but this proved to be a false dawn; for the next few seasons they stayed in mid-table as Chapman took his time to assemble his side, slotting new signings such as winger Joe Hulme, forward Jack Lambert and defenders Tom Parker and Herbie Roberts into his new formation. In 1927, Arsenal reached their first FA Cup final, only to lose, infamously, 1-0 to Cardiff City, after Arsenal's goalkeeper Dan Lewis let a harmless-looking shot slip through his arms and into the net; it was the only occasion in history that the FA Cup has been won by a club from outside England.
Chapman was not deterred, and continued to build his side, signing future captain Eddie Hapgood, as well as three of the club's great attacking players, David Jack, Alex James and Cliff Bastin; it was especially Alex James, Arsenal's playmaker in midfield, supplying the forward line and wingers, who became celebrated as the engine of the team. Three years later, in 1930, Arsenal reached the FA Cup final again, this time against Chapman's old club Huddersfield Town. The match was notable for being "buzzed" by the enormous German airship Graf Zeppelin. Arsenal were not distracted from their task; they won 2-0 with goals from James and Lambert, to bring home the club's first major trophy.
This success was the first in a decade in which Arsenal were the dominant club in England. Under Chapman they won the First Division for the first time in 1930-31, scoring 127 goals in the process. The following year, Arsenal reached the FA Cup final again, losing controversially to Newcastle United. Arsenal had led 1-0 with a Bob John goal, but Newcastle's equaliser came after a long ball had gone over the goal line, and out for a goal kick; Newcastle winger Jimmy Richardson nevertheless crossed the ball back into play and Jack Allen levelled the match for the Magpies; Allen scored again in the second half to win the match 2-1. Arsenal's pain was compounded by the fact that Everton had pipped them to the League title; a poor start to the 1931-32 campaign meant Arsenal played catch-up for most of the season and ended the season two points adrift.
Arsenal bounced back the following year, winning their second League title in 1932-33; after another weak start Arsenal went on a long winning run to catch up, culminating in a 5-0 win over second-placed Aston Villa at Highbury in April to clinch the title. By this time Chapman's first set of signings had started to show their age, so with an eye to the future Chapman signed the likes of George Male for Tom Parker and Ray Bowden for David Jack. The only blot on the club's record was an infamous loss to Third Division North Walsall in the FA Cup; five of the first team were out with injury or flu and had their place taken by reserves, but Arsenal still had plenty of top-class players in the side, yet lost 2-0 in one of the greatest Cup upsets of all time. One of the stand-ins, Thomas Black, was particularly to blame (conceding a penalty for Walsall's second), and was sold by an enraged Chapman to Plymouth Argyle within a week of the result.