News Items
Arsenal agree £130M deal wih Nike, £55M for new stadium
By Richard
Aug 9, 2003, 9:36am

Arsenal are celebrating a £130m (€185m) windfall from a new kit sponsorship deal with Nike which should remove all doubts over the plans to build a new 60,000 capacity stadium.

The deal is spread over 10 years but a key factor is that Nike have agreed to hand over a lump sum of £55m (€78m) in July 2006 when the Gunners intend to move into their new home at Ashburton Grove.

And a letter of credit for the £55m (€78m) is being provided immediately so would-be lenders can be assured of the club’s financial position.

There was shock and surprise within the game when Arsenal recently revealed debts of around £44m (€62.6m).

The move from Highbury to their new stadium was put back by a year, with costs expected to rise to around £400m (€569m).

Building work is currently stopped while the club negotiates the purchase of a myriad of small businesses around the proposed site.

The club’s denials have not quietened persistent rumblings that a move to share the new Wembley project with the Football Association would be launched.

However, the club are still hopeful of starting work at Ashburton Grove again in September, but are not yet able to confirm this.

Arsenal’s current deal with Nike is worth £5.7m (€8.1m) annually, but the new agreement has increased that figure by nearly £8m (€11.4m) a year.

Like Premiership rivals Manchester United, who also have a deal with Nike, Arsenal will have to give up some of their own merchandising and retail licensing rights to Nike.

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