After Chelsea and Adidas agreed to end their kit sponsorship six years early, the team has signed a $119 million per year contract with Nike. This doubles their previous contract with Adidas.

Fox Sports said that the deal will be effective summer of 2017. This will make Chelsea the second highest paid in Europe in terms of sponsorship. The top place is garnered by Manchester United with $148M a year while Bayern Munich ranks third place at $84M a year.

Without any certainty of a Champions League soccer next year, the extra $60M each year will be used to continue looking for top players that the new manager will need. Antonio Conte needs top-of-the-line players to properly launch a great team for the English Premier League.

Telegraph Sport reported that the team’s decision to terminate their partnership with Adidas will cost them $79M but their agreement with new partner Nike will make the termination worth it.

Marina Granovskaia reportedly negotiated the latest Nike sponsorship after the $79M a year Yokohama partnership, as well as the $20M a year training kit agreement with Carabao.

The team did not provide comments on their latest Nike agreement, but most huge contracts run for a minimum of 10 years, which will give Chelsea a total of more than $1B.

Uefa Financial Fair Play limits are computed over a three-year evaluation period, with football clubs given around $46M more than what they earn for 2015-2018.

Inability to qualify for next season’s Champions League will leave Chelsea a loss of at least $79M. This will not pose a drastic impact on their spending power this summer.

With the added $60M per year from the Nike sponsorship starting 2017, along with their Premier League TV deal effective next season, Chelsea does not have to worry over the present three-year evaluation period.