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According to a variety of sources, Watford has rejected a Leicester City bid for striker and team captain Troy Deeney, as the Hornet scored 13 goals in his first top-flight season. Leicester bid around £15 million, while Watford have no interest in selling – and they also value the player closer to £30 million, thank you very much. He's under contract for four more years and appears to have no great desire to leave, so Leicester would probably have to actually get pretty close to that £30 million number to land him.
Why does this matter to Arsenal? Only because we're trying to land a one Jamie Vardy, current Leicester striker.
So what does this bid tell us about Arsenal's seemingly plummeting chances of getting Vardy? It depends on how you look at it. On the one hand, £30 million is a lot to spend on a position where you're already in pretty good shape for a club of Leicester's financial means, TV deal or not. Champions League money helps, but one guesses that the added stresses of European play and travel would mean you prioritize depth over getting one big name (and yes I know it's Troy Deeney, but...£30 million). That could be a signal that Leicester are preparing for life after Vardy, whatever percentage the chance is. It's also easier to spend £30 million or so when you're about to take in £20 million in release clause money.
On the other hand, the play could be to sign Deeney and have him team up with Vardy up front. The rumor is that Leicester want Deeney with or without him, and they'd play together or alternately. That makes some sense, especially in the Premier League. It is, of course, also what Arsenal said when we signed Olivier Giroud (supposedly to compete with Robin van Persie). But the fact that wasn't the case for Arsenal then doesn't mean it's the same for Leicester now.
If Leicester do sign Deeney, it gives them the opportunity to let Vardy go without losing too much. But it doesn't guarantee that's the plan, so honestly the best plan for fans is not to read too much into this for now.