I never said it was a geographical location. But a business that is known for where it is located can be referred to as a location especially as there was only one of them. So if the team was named after the Royal Arsenal people knew that the team was based in the South of London. Granted they were not located there for very long, but it still refers to a physical location.
Compared to the Dolphins who could be based anywhere on Earth as Dolphins exist everywhere there can be open water.
Using that logic everything has a location therefore, ipso facto, the name refers to that location and as such is a 'locational name'. I'm sorry but that is just a twisted way of looking at things.
The Royal Arsenal's physical location was totally impertinent to the club naming themselves Arsenal. The club literally could have been located anywhere in London's geography and they still would have called the club Arsenal because the thing that those initial players and fans were trying to represent was the fact that they worked for the Royal Arsenal, not the Royal Arsenal's location and surrounding region.
If they wanted to represent the Royal Arsenal's location then they would have called themselves Woolwich, but again the geography wasn't the important part of their identity that they were trying to represent, and the club wasn't for just anybody from Woolwich/the South of London where the Royal Arsenal is based. Therefore the name transcends geography and as such it isn't a geographical name, which, BTW, is probably why it was relatively easy to move the club from Woolwich to Islington without having to make major changes to the clubs brand or identity.
Take Celtic as a clearer example; initially Celtic was an ethnic/denominational club that was set up for the express purpose of representing the Irish and (to a lesser extent) Catholic minorities in Glasgow. Technically Celtic has a location (i.e. the East End where most Irish immigrants lived at the time) but that location was meaningless to the initial supporters and the naming convention of the club because they weren't representing the East End, they were representing their 'Irishness'. As such a non-Irish/Catholic that lived in the East End wasn't inclined to support Celtic, and Irish/Catholics that lived outside of the East End were more inclined to support Celtic than their local team because of their ethnicity, and as such the team's location in the East End was, at the time, utterly meaningless in real terms.