Why Arsenal doesn't call themselves "London" or "London FC":
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Historical Identity: Arsenal Football Club was founded in 1886 in Woolwich, South East London, and moved to North London in 1913. The name Arsenal is a unique and historic brand tied to its roots (it was originally named Dial Square, then Royal Arsenal). Changing to "London FC" would discard that heritage.
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Brand Distinction: In London, there are multiple clubs — Chelsea, Tottenham, West Ham, Crystal Palace, Fulham, etc. Simply calling themselves "London" would be misleading or confusing, as they are just one of several top-tier London teams. Arsenal prides itself on being the club from North London, with fierce rivalries — especially with Tottenham Hotspur.
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No Club Uses the City Name Alone: It’s uncommon in English football for clubs to use the city name alone, especially in big cities with many teams. For example:
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Manchester has Manchester United and Manchester City.
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Liverpool has Liverpool FC and Everton.
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Birmingham has Aston Villa and Birmingham City.
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Using the city name alone (e.g., "London FC") would be presumptuous and ignore the other clubs’ existence.