£130m Nike deal bails out Arsenal

ARSENAL are celebrating a £130m windfall from a new kit sponsorship deal with Nike which should remove all doubts over the plans to build a new 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.

A letter of credit for the £55m is being provided immediately so would-be lenders can be assured of the club’s financial position.