PUMA CEO Bjorn Gulden on how Arsenal deal will rejuvenate the company

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  • New beginnings: PUMA CEO Bjorn Gulden believes the company's Arsenal deal will help their presence in the Middle East.

    The saying goes that you should never mix business with pleasure, but PUMA CEO Bjorn Gulden is successfully confounding that phrase.

    The sports-mad 49-year-old was on hand last week in London’s fashionable Carnaby Street to celebrate the launch of his company’s high-profile five-year kit sponsorship with Premier League giants Arsenal – an agreement that has dominated a large amount of the former professional footballer’s time since taking the helm in April 2013.

    Gulden was tasked upon arrival with successfully leading the iconic German brand back to profitability and its traditional spot at the heart of the sporting goods market.

    Sport360°’s Matt Monaghan caught up with the Norwegian to discuss the impact of the deal, PUMA’s ambitious growth plans and its standing in the Middle East.

    Q How does a partnership like this between Arsenal and PUMA come about?

    A It is a long, long process that began well before I started with the company. 

    This time, the pitch started more than a year ago. We presented our concepts and designs, discussed business plans, then we got the go ahead. 

    We are so excited as we have tried to sign Arsenal three times before, now we have managed it. It really starts now, getting our products in the store and launching the kits.

    To agree a deal like this, is it simply about money or are there other incentives PUMA as a company can offer Arsenal?

    You have to understand that a deal like this has many elements. The money is an element, but I always think that the more we have to pay then the better it is, because we will sell a lot.

    There is a fixed sum, which is the retainer, then there are royalties based on how many [Arsenal] products you sell. 

    For both of us, we want to have a global brand. It is then about how you can open up different markets throughout the world – how can you work together to build the popularity of both brands?

    How important is football to PUMA?

    We want to be the fastest growing sports brand in the world. We have one of the longest histories in football, along with adidas, as we came from the same family.

    Football is the biggest sport worldwide, so it is extremely important for us.

    What is it like seeing all these fans come out to enjoy the launch of your kit deal?

    For our designers, to see the players like the product and get reactions from the fans is the greatest feeling you can get. Don’t forget that when we deliver a collection like this, both fans and players are involved.

    You do not just sit in an office and draw something. 

    This is a day where you see whether you have done your homework, listened to all the input and made the right decisions. So far, I think we have.

    What happens between your company and Arsenal now the kit has been launched?

    We have dedicated people in the offices of Arsenal all the time, mixing in the organisation. We have a pretty big team working on the development of new products all the time.

    We also have people in the factories looking after the Arsenal products, so it is a pretty big staff that is dedicated only to Arsenal. 

    The agreement with Arsenal is a record amount for PUMA. Is this just the start, or will Arsenal remain the flagship?

    Who knows? This industry is moving, we are always looking and talking. Arsenal is definitely our flagship [at present]. We have also other teams like Borussia Dortmund, who have been very successful. In the World Cup we had eight teams, so we have plenty of teams in our portfolio.

    What kind of exposure do PUMA have in the Middle East?

    I think the Middle East is a market that is growing in importance for all the brands. It is not that easy from a distribution point of view, many of the brands have worked with distributors.

    It is a big opportunity for us as we know sport is becoming ever more popular out there. We also think Arsenal will help us with our popularity in the Middle East.

    Al Ain striker Asamoah Gyan wears your PUMA boots. How important is he to the company?

    He is important in the Middle East and a great player. He is an asset that we invest in.

    You come from a professional sporting background, how has this influenced your business career?

    I was a professional footballer when I was young, playing in Norway and Germany before getting a very serious injury. I then took bachelor and masters degrees in finance and marketing.

    I worked for a decade with adidas, then in retail for 12 years, before becoming CEO at PUMA.

    I come from a sporting family, we are all about sports. I think it gives you a competitive edge in the sense that you know what sport is about and are passionate about it.

    How important is the World Cup to PUMA?

    You cannot get anything bigger than the World Cup in Brazil. It was a fantastic event.

    We had four teams in the last 16, but unfortunately some of them were very unlucky to lose. We showcased our brands, with what I think are the nicest uniforms.

    PUMA will be revealing the new Arsenal jersey at Dubai Mall on July 18, where people can pick up the new shirt and win a trip to London to watch the Gunners play.

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