The striker had scored the first ever goal at Wembley (the stadium had just been built) when his Bolton team beat West Ham in the 1923 FA Cup final, but the fee appalled some people.
Sir Charles Clegg, head of the Football Association, believed no player was worth £10,000, but it could have been worse given Bolton asked for £13,000 initially – double the previous record set by Sunderland when they bought Bob Kelly from Burnley.
Chapman, though, had a trick up his sleeve and invited a Bolton delegation to London for drinks, according to Bob Wall in Patrick Barclay’s book The Life and Times of Herbert Chapman.
Wall, who later served as an general secretary at the club, was just 16 when he accompanied Chapman to the meeting.
Instructing the barman to give his guests whatever they wanted as long as they were double measures, Chapman explained he would be drinking gin and tonic and his young assistant was on the whiskey and ginger.
Except the barman - now flushed with extra cash from the Arsenal chief - was to leave the gin and whiskey out.
So, many rounds later when the Bolton lot were feeling merry, a very sober Chapman was able to haggle the price.
But surely Jack was passed his best at 29 years old?
No is the simple answer. He finished the season as top scorer and in 1930 won the FA Cup again to become the first player to win the trophy with two different clubs at Wembley.
They were magical times for Gooners, with Jack playing in one of the most devastating attacks the game has seen alongside Joe Hulme, Alex James, Jack Lambert and Cliff Bastin who was dazzled by his team-mate's talent.
“David was one of the finest inside-rights I ever saw,” he explained in his autobiography Cliff Bastin Remembers.
“An amazing natural body swerve and a terrific shot made him a terror to defences,” he added.
In addition to FA Cup glory, Jack won three titles and scored 124 times in 208 matches before retiring in 1934.
David Jack: 1898-1958