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Arsenal sign $247.5M deal with Puma to become new kit supplier

Jan 27, 2014, 9:37 AM EDT

Puma Arsenal

Reuters is reporting that Arsenal have penned a $247.5M (£150M) deal with Puma to become the new kit supplier for the club over the next five years.

Arsenal’s deal with the German sportswear company on Monday signifies an end to the Gunners 20+ year devotion to Nike.

While specific financial details were not disclosed Puma admitted the deal was the biggest ever for both itself and Arsenal, and that the German manufacturer will also produce other branded Arsenal merchandise. In 2012, Arsenal signed a contract renewal with Emirates airlines for shirt and stadium sponsorship worth approximately $250M (£150M) over five years.

The agreement represents a massive coup for Puma, whose new CEO Bjoern Gulden, a former professional soccer player and Adidas AG executive, is attempting to re-establish the label as a core sports brand after spending the last decade diverging its line into lifestyle and fashion. Arsenal is the latest sports entity to pen a deal with Puma following Olympic sprinter Usain Bolt, golfer Rickie Fowler and several soccer players, including Barcelona’s Cesc Fabregas and Arsenal’s Olivier Giroud.

Since his hiring last year, Gulden has spent streamlined Puma’s business by cutting costs, rationalizing retail outlets and reducing infrastructure. The major reorganization process has already cost the company $246M in 2012 and $178M through the third quarter of 2013.

“Now we will focus on performance and we will use our assets from performance [sports] in lifestyle advertising,” Gulden told The Wall Street Journal Monday. “It is more about using the asset base rather than adding to it.”

Arsenal’s new uniform will be unveiled next summer and a full range of Puma’s new product lines will go on sale starting next year.

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