Arsenal signs up £10m sponsor

MOBILE phone group mmO2 is to become the official sponsor of Arsenal Football Club, it was announced today. The firm, spun out of BT last year, has clinched a deal with the Premiership side that will see it become official club sponsor and exclusive mobile communications partner from August this year.

The two-year deal is worth at least £10m, with a further option for another two years.

MmO2 said the deal was the largest sponsorship agreement Arsenal has signed. As well as an up-front sponsorship fee, the club will receive a percentage share of network revenues generated from jointly-branded interactive mobile data and audio services.

Dave McGlade, managing director of O2 UK, mm02's brand in this country, said: 'This partnership is financially beneficial to both parties, an enormous brand builder and, above all, great for fans and customers.'

Computer games company Sega has been Arsenal's chief sponsor for the past three seasons. Its Dreamcast games console currently advertised on players' shirts has ceased production. Previously the club had an18-year arrangement with electronics group JVC.

Nike, McDonald's, Bank of Scotland and Capital Radio were thought to be among the companies bidding to take over from Sega.