Last week, Manchester City announced a new deal with kit manufacturer Puma, extending their current relationship to at least 2035 and setting a contract value of £100mn a year.

That makes the deal the first billion-pound kit agreement the Premier League has seen. So how do you go about making history when it comes to commercial deals? Here’s what two of our UK experts had to say.

1 · PROFILE AND VALUE PROPOSITION

GSIQ co-founder Charlie Dundas says that only a very few sports brands have this kind of pulling power.

“Even though they fell short on the silverware front last season, City remain box office. We’re constantly monitoring media exposure for sports properties and brands and while City may lack the overall star power of, say, a Barcelona, their value proposition is super-strong. Their style of play, coach and recent dominance make sure they sit in the top bracket of clubs.”

2 · LONGEVITY

This latest deal stretches the relationship to what could be more than 15 years. Fellow GSIQ co-founder Josh Marcus, says,

“Extended deals can deliver long after a club has found a new sponsor or manufacturer. Think Carlsberg and Liverpool or Adidas and Bayern. After such a long partnership, Puma will continue to derive benefit from the association after their deal ends. There’s value in that.”

3 · EFFICIENCIES

Our team believes that the fact that Puma subsidiary Stichd plays a large role in City’s retail operation – both bricks and mortar and online – will have played a significant role in getting the deal over the line.

“People like having a single partner across multiple parts of a business,” says Charlie. “Because the efficiencies that you can create drive cost-savings.”

As it happens, Stichd also operates the Premier League’s online shop, while Puma provides kit for all CFG’s clubs.

4 · CONFIDENCE

“You don’t do a deal of this size and length without having confidence in each other,” says Josh.

“That’s particularly relevant here because City are still waiting to find out the verdict of the Premier League charges against them. There are likely to be some legal backstops in the deal in the event that City find themselves relegated but even so, my guess is that Puma are pretty positive about City’s prospects.”

5 · PEOPLE

As GSIQ’s people-person extraordinaire, it’s no surprise that Charlie Dundas should highlight the interpersonal skills needed to pull off a deal of this size.

“Contracts like this don’t get struck without strong personal relationships at the top and this deal speaks to the ability of City’s top commercial people to communicate the club’s vision in a competitive market. City have some of the best people in the business and that’s part of the reason why they were able to land this deal.”

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