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£130m for Arsenal
By Paul Thomson, Evening Standard Last updated at 00:00am on 08.08.03
New deal: Arsenal will net around £130m from their shirt deal
Arsenal have received a massive cash boost as they attempt to finance their new stadium at Ashburton Grove.
A new kit sponsorship deal with Nike revealed today is worth an estimated £130million to the club over the next 10 years, starting in July 2004.
But the key element in the deal is a £55m lump sum that will be paid to the club by July 2006, when they intend to move to their new £400m home.
More importantly, a letter of credit for the £55m is being provided immediately so that banks and finance houses interested in funding the stadium can be assured of the income and the club's financial position.
That has been the subject of much speculation this year following the decision to put the move from Highbury on hold after difficulties in securing banks to underwrite the project.
Building work was stopped and there were renewed reports of a possible move to Wembley.
Those will inevitably increase after new Football Association chief executive Mark Palios said he "could not rule out" Arsenal and Spurs sharing the stadium.
But Arsenal are now confident, following this deal, that the stadium money will be in place by the end of September, allowing work to restart and putting an end to all the rumours.
Arsenal's current deal with Nike is worth £5.7m a year. But the new deal has increased this figure by £7.8m each season.
It is the second huge deal that Nike has struck with an English club. Two years ago it announced a £303m deal with Manchester United for 13 years.
In that deal it took over United's entire merchandising and licensing operation and the right to sell United kit.
Arsenal, however, will keep some of these lucrative rights.
