Report: Chelsea signs lucrative kit deal with Nike

Chelsea has reached an agreement with Nike worth £60 million per year to sponsor the club's kits. The deal comes just one week after prematurely terminating its deal with Adidas, according to The Telegraph's Matt Law.

Related: Chelsea to terminate kit deal with Adidas next season, 6 years early

The Blues opted to end their partnership with Adidas six years early at a penalty of £40 million, but Nike has made it more than worthwhile for them.

It's one of several commercial deals the London club has concluded over the past two years. It signed a five-year pact with Yokohama Rubber at a rate of £40 million a season in February 2015, and announced Carabao as a training-kit sponsor in November.

The Nike deal will bring in double what Chelsea netted from Adidas, meaning it will add £30 million to its coffers per annum. It will give the club extra leeway as it looks to meet UEFA's Financial Fair Play standards, and potentially offer a more robust transfer budget for incoming manager Antonio Conte.

Manchester United still owns the most lucrative sponsorship, with Adidas paying the Red Devils £75 million a season.