As broken (pretty much) exclusively here... Arsenal have confirmed a tie-up with Granada. They get a 5% stake in the club now, we get £47 million to build Ashburton Grove. And when planning permission for the new stadium is granted, Granada's stake rises to 9.99% - the maximum under Premiership rules for multiple holdings. A joint venture company, AFC Broadband will 'exploit new media rights' including broadcasting by Internet.

The full statement follows...

The Boards of Granada Media plc ("Granada Media") and The Arsenal Football Club plc ("Arsenal") announce today that they have signed a strategic partnership agreement, under which Granada Media will take an equity stake in the club, become its commercial services and media agent and become its global new media partner.

KEY HIGHLIGHTS:

Granada Media will invest GBP47 million into the strategic partnership, in return for:

• 5 per cent of the enlarged share capital of Arsenal
• a 50 per cent interest in a new joint venture company, AFC Broadband, a global portal which will exploit the club's new media rights, including delayed coverage of the club's Premiership matches, across all online and broadband media
• Granada's appointment as exclusive commercial services and media rights agent for the club

Arsenal plans to use the investment funds towards financing the development of the proposed new 60,000 seat, state-of-the-art stadium at Ashburton Grove in North London.

In addition, Granada Media has agreed to acquire an additional 4.99 per cent of the enlarged equity in Arsenal, conditional on finalisation of arrangements, including planning permission, for the new Arsenal stadium.

Granada will use its extensive commercial and brand management expertise to enhance Arsenal revenues. It will manage commercial services and act as media rights agent for Arsenal and AFC Broadband for advertising, sponsorship, merchandising, publishing and licensing agreements. It will negotiate media rights for live Premier League matches when they become available to the club and existing UEFA Cup matches and local and regional radio rights.

Granada Media and Arsenal will set up a new media joint venture company, AFC Broadband, to exploit media and commercial rights across on-line and broadband media on a global basis. The new portal will be a one-stop shop for Arsenal fans offering a wide range of entertainment, e-commerce and personalised services. Over time, the portal will be developed and expanded for international distribution. Arsenal.co.uk will be re-launched as Arsenal.com, the initial platform for AFC Broadband, with a new range of services.

Commenting on the announcement Steve Morrison, Chief Executive of Granada Media, said:

"This new joint venture is central to Granada's strategy to offer innovative, enriched and personalised internet and broadband services to affinity communities, for example fiercely loyal football fans around the world, bringing them closer to their passion, such as Arsenal FC.

"Today's agreement with Arsenal, with its substantial UK fan base and wider international support, consolidates our position in Premiership football and is another important step in developing our broadband businesses, following our recent partnership agreements with Liverpool FC.

"With our successful JVs with Liverpool FC, Manchester United TV and today's addition of Arsenal FC, we now have powerful relationships with all of the top three Premiership clubs.

"We're very proud and excited to be Arsenal's partner and look forward to working together to further strengthen the Arsenal brand and to accelerate the growth of its international fan base."

Peter Hill-Wood, Chairman of Arsenal, said:

"This partnership will assist us in meeting Arsenal's two strategic objectives, which are first, to build both a world class team and a new stadium with an increased capacity so that more of our fans can enjoy watching the team; and secondly, to develop the Arsenal brand on a global basis by extending our fan base around the world. The Board strongly believes that this partnership will enable Arsenal to fulfil these two objectives, and we look forward to a long and fruitful relationship with Granada Media."

N M Rothschild and Sons Limited acted as adviser to Arsenal in relation to this transaction.