LONDON: Arsenal's plans for a new 500 million pounds (US$818.6 million) stadium will eat into the club's transfer budget for next season, manager Arsene Wenger was reported as saying in British newspapers yesterday.

Arsenal chairman Peter Hill-Wood was quoted in March saying Wenger would have 10 million pounds a year to spend for the next three years, despite the plans for a 60,000-seater ground at North London's Ashburton Grove.

But in the Sunday Express Wenger says: "It has been a difficult summer. I have a transfer budget, but I don't know about the figure of 10 million pounds.

"We are being a bit more cautious than we usually are. We have never been big spenders but this season we will be smaller spenders than ever."

The new stadium project, located very close to the premier league club's 38,000-seater Highbury home, has been dogged by construction, financial and infrastructure problems.

The club said in April that the stadium would not be ready for the 2005-2006 season as originally hoped.

"At the moment, I would say the financing of the stadium hasn't been sorted out," Wenger said.

"I'm sure in the future it won't have an effect but at the moment we have to be more cautious."

However, the Frenchman was upbeat about the club's prospects, despite having so far failed to make a major signing or replace goalkeeper David Seaman, now at Manchester City.

"When I open the newspapers it looks like we are a sinking boat," he said. "But I don't share that view because in the last two years we have won two (FA) Cups and finished champions and runners-up.

"And we have exactly the same players, who are more experienced now and still young.

"I'm a strong believer that we are getting stronger every year and I'm convinced we will be competitive in the title race."

Agencies via Xinhua

(China Daily 07/14/2003 page8)