The Gunners and the Reds have endured frustrating starts to 2017 and have fallen off the pace in the race for the Premier League title.
Indeed, Liverpool are yet to win a top-flight game in 2017 and Arsenal have just suffered back to back defeats in the top flight to dent their title hopes.
Liverpool are currently fifth in the Premier League table, while Arsenal are just ahead in fourth place.
However, former Arsenal man Merson is not expecting either team to finish in the Champions League qualification spots this season.
Speaking to Sky Sports, Merson said: “I think Liverpool and Arsenal will end up with bad seasons, but it can all change.
“You could ask me next week and Liverpool have beaten Tottenham, Man City have dropped points at Bournemouth and Arsenal hammer Hull 4-0 and all of the sudden it’s a different picture. It’s such a hard one to call right now.”
Arsenal, who finished second last term, return to Premier League action with a home clash against Hull City on Saturday, while Liverpool take on Tottenham as they look to win their first Premier League game of the year.
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