Arsenal sign new kit deal

Nike have sponsored Arsenal since 1994

Arsenal have secured a £130m 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 in July 2006 when the Gunners intend to move into their new home at Ashburton Grove.

Arsenal's move from Highbury was recently put back by a year, with costs expected to rise to around £400m.

And building work has been stopped while the club negotiates the purchase of a myriad of small businesses around the proposed site.

However, the club are still hopeful of starting work at Ashburton Grove again in September.

Arsenal's current deal with Nike is worth £5.7m annually, but the new agreement has increased that figure by nearly £8m.

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