SunSport exclusively revealed the clip which took place before the start of the new season, but the ex-Gunners ace has revealed he isn't concerned by the incident.
Groves has suggested he would much rather the players partake in 'laughing gas' than go on 15-pint benders – which he used to go on in during his spell six-year spell.
The 53-year-old was a member of the 'Tuesday Club' in the 1990s where the players used to bond and drink excess amounts of alcohol.
Other members, such as Paul Merson, Lee Dixon, Tony Adams and Steve Bould used to regularly attend the gatherings, with boss George Graham turning a blind eye to their antics.
Following the footage which showed the likes of Pierre-Emerick Aubameyang, Mesut Ozil and Alexandre Lacazette involved, the players will be given a stern warning to by club bosses over their conduct.
Speaking to talkSPORT, Groves said of the incident: "I’d rather they take a little bit of gas out of a balloon than having 15 pint benders like we used to.
"Also, this is isn’t in public, this is a private room they’ve hired, so their privacy has been breached if someone from that establishment sold the CCTV footage.
“The thing that amazes me is that apparently Ozil was involved. You can understand it some of the youngster players were involved, but the older ones?
“But, then again, when we were 29 and 30 we were with the youngster players and our ‘Tuesday Club’ galvanised team spirit – there was no hierarchy, there were no cliques.
"It wasn’t the older players going out and the young players going out separately, we tried to bring them into the fold.
“It’s no surprise it’s come out now because Arsenal has gone 20 games unbeaten and everything is going great.
“But it doesn’t outrage me at all to be fair. To me it seems like it’s quite innocent.”
Arsenal will be looking to put the scandal behind them as they look to get back to winning ways against Huddersfield tomorrow.
The North London side dropped out of the top four on Wednesday after being held to a 2-2 draw against Manchester United at Old Trafford.
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