Professional football’s landscape is once again shifting—this time with more force than ever. Puma and Manchester City have just announced a staggering extension of their kit sponsorship contract, one that could exceed an unprecedented $1.5 billion. The deal, which will now carry City’s partnership with Puma through at least 2035, has redefined the financial ceiling for kit manufacturer agreements while underscoring the value that can come from aligning a global brand with continued dominance on the pitch.

City is reportedly set to take in nearly £100M ($134M) per season, a notable increase from the £65M ($88M) they agreed to during previous contract negotiations with Puma in 2019. The deal will be the richest in the history of the Premier League—even surpassing the 2023 pact Manchester United signed with Adidas back in 2023 (10 years at £900M, or $1.2B). While critical financial terms and performance-based incentives will naturally remain confidential, the vast scope of the parties’ agreement speaks volumes. Clearly, Puma aims to bet big—not just on the continued success of City, but also on the club’s ability to keep driving fan engagement across the globe via both traditional and emerging platforms.

Puma’s Premier Partner: A Relationship Built on Success

Manchester City’s first contract with Puma came before the 2019–20 season—a linkup that was perfectly in sync with one of the most decorated periods in City’s club history. Over the next six seasons, the men’s team took home a whopping four Premier League titles—most prominently a 2022–23 campaign in which City won the treble and lifted both the FA Cup and Champions League trophies. Not to be left out, the women’s team added hardware of their own, with both squads being featured as critical pieces of Puma’s sports marketing empire.

Since beginning their storied partnership, the two parties have pushed the boundaries of creativity in kit sponsorships—from debuting AI-made fan jerseys to dropping kits in the metaverse, City’s relationship with Puma has evolved well beyond traditional apparel. The collaboration between the two has become a case study for how elite performance and digital engagement innovation can join forces to drive global revenue and reinforce brand identity. The CEO of City Football Group (CFG), Ferran Soriano, highlighted the extreme ambitions of their Puma partnership, saying, “We joined forces with Puma with the ambition to challenge ourselves and go beyond the expectations. We have achieved this and more over the last six seasons." Soriano’s sentiments were reiterated by Arthur Hoeld, CEO of Puma, who pointed to the “great success both on and off this pitch” that the two groups had enjoyed over the course of their relationship. Notably, the deal will also deepen Puma’s connection to the CFG umbrella—already including clubs like Girona, Mumbai City, Palermo, and Melbourne City—strengthening the brand’s global ties with roots now spanning multiple continents.

The Global Arms Race of Kit Sponsorship

More than just a flashy headline, City’s deal reflects the new economics of elite global football. These sorts of sponsorships are no longer reduced to mere logo placements on jerseys. The partnerships of today span merchandising, data insights, licensing, IP rights, and more. For clubs, they also serve as a crucial revenue stream that supports more than just roster building—it’s the fuel that drives international expansion.

With billions on the table, the courtship between major sportswear brands and top clubs is further intensifying. Every deal that breaks a record is resetting the global market. Yet, these deals are also including increasingly complex legal structures—varying in terms of their profit-sharing models, performance triggers, and regional licensing rights. While Manchester City’s deal may surpass United’s in terms of its annual value, underlying performance clauses and guaranteed revenue may shift how each deal is truly measured in practice.

Another key consideration is how revenue is reported. Depending on whether merchandising is outsourced or handled in-house, the same £100M may show up in entirely different ways in reports or on a team’s balance sheet: net revenue vs. gross revenue or direct vs. sublicensed. While it may seem subtle, these nuances matter—especially when comparing league rankings of commercial income and club financials.

Europe vs. the U.S. Model: A Stark Contrast in Sponsorship Frameworks

This sort of mega-deal, club-first structure is largely unique to European football. In the U.S., major professional leagues like the NFL, MLB, and NBA control jersey sponsorships. For example, Nike produces all NFL uniforms, with revenues typically being pooled together and shared across all teams in a system designed to maintain parity.

However, cracks have formed in this centralized model, beginning in 2017 when the NBA permitted individual teams to sell jersey patch sponsorships—granting franchises a slight amount of autonomy despite still facing broader league restrictions. Continuing this trend, the NHL allowed helmet ads in 2020 and jersey patch sponsors in 2022. The MLB also granted teams the ability to have jersey sleeve partners under the 2023 collective bargaining agreement (CBA) and addedhelmet ads in 2024. The NFL has held out, refusing to allow team-based jersey sponsors beyond their league deal with Nike. Interestingly, despite being a smaller professional league, the MLS was actually early to the game, first allowing jersey sponsors in 2007 (and becoming the first American professional league to have such deals) before permittingseparate training kit deals in 2014 and sleeve sponsorships in 2020. These same types of deals are also seen across Europe, with brands like Spotify, Fly Emirates, Qatar Airways, and T-Mobile investing millions to be featured on kits. That said, these patch deals and smaller sponsorships all pale in comparison to full kit agreements like that of Manchester City.

From a legal perspective, these sorts of decentralized deals all come with tight restrictions, such as ensuring that new sponsors don’t conflict with league-level agreements (at least in the U.S.). Teams also frequently negotiate zones of exclusivity, approval rights, and industry categories. For European clubs like City, the freedom to strike global agreements and develop international partnerships allows them to craft massive long-term plans—but also notably shifts commercial and legal risk squarely onto the shoulders of the club.

Looking Ahead: City Sets the Stage

Manchester City’s new deal is about far more than just the numbers—it’s a highly successful strategic blueprint for excellence in global sports branding in the 2020s. As streaming continues to expand its reach, emerging markets keep entering the fold, and digital activations are reshaping the very definition of fandom, the clubs with the strongest commercial connections will rise to the top and enjoy an edge that lasts far beyond when the last player exits the pitch.

Puma’s extension signals that City is ready and eager to lead that charge. As teams like Nike’s FC Barcelona or Adidas’ Real Madrid wait in the wings as potential next squads to break the kit sponsorship record, this contract sends a clear message: build a global brand, win consistently, and your shirt will become more than a uniform—it will be a billion-dollar billboard.

Oliver Canning is a 3L at the University of Miami School of Law. He can be followed on Twitter (X) @OCanning and found on LinkedIn.