Inside Pep Guardiola’s new Man City deal and influence on 115 fees, Liverpool and Arsenal

It will be the kind of news to send a shiver down the spines of his rival managers at home and abroad.

Pep Guardiola is staying at Manchester City until 2026 at least, with the option to extend his deal by another 12 months. It means Guardiola will now focus on extending his legend, and a legacy which has already seen him win a staggering 18 trophies since arriving in Manchester in 2016.

It also means the likes of Mikel Arteta, Arne Slot & Co will have to continue the seemingly impossible challenge of competing against the best manager in the business. Good luck with that, fellas.

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City’s intentions to secure Guardiola’s services on a new contract were never in doubt. Owner Sheikh Mansour flew the Spaniard to Abu Dhabi last month to talk him into putting pen to paper.

Mansour reminded Guardiola he was still viewed as the greatest manager in the world, someone who still had more Premier League and Champions League titles to win. Guardiola has a close relationship with his chairman, Khaldoon Al-Mubarak, who was left close to tears before the final game of last season when his manager ran a video for his players showing the highlights of that campaign.

The hesitation came from Guardiola himself. His emotional investment in football leaves him in need of breaks, while he continues to battle a painful back issue, despite having surgery last year.

There was also the question of him being apart from his family. His wife, Cristina Serra, continues to spend most of her time living in Barcelona. But while Guardiola’s long-held ambition is to coach an international team before he retires, he decided he still has the energy and drive to commit himself to City for at least another season after this one.

And the implications of his decision will be far reaching. Guardiola will still be in charge when the repercussions of his club’s groundbreaking legal battle with the Premier League become known.

If City are found guilty of 115 charges of breaking financial rules, he could find himself managing a team in League Two, or one under a long transfer embargo. The sight of him standing on the touchline at the likes of Morecambe, Accrington or Carlisle would be one to behold.

Yet perhaps Guardiola’s decision to stay hints at the growing confidence City have in winning the case. And his show of faith also means he will be in charge beyond this summer, when City are likely to undergo a major overhaul.

In the short term, the news should boost his squad at a time when City find themselves on a run of four straight defeats in all competitions. The worst spell during Guardiola’s reign.

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Long term, however, Guardiola staying allows him to usher in new sporting director Hugo Viana, while providing a layer of security and stability for certain players. Kevin De Bruyne is out of contract next summer, but could now decide to follow Guardiola in signing an extension.

Jack Grealish has struggled to get into the team and could decide to leave, while the likes of Kyle Walker, John Stones, Ederson and Bernardo Silva could decide to continue the Etihad journey. And Guardiola is guaranteed to be given huge sums to spend again on new signings next summer.

He likes to operate with a smaller squad, citing quality over quantity, but has found out this season how debilitating this can be when injuries and bad luck kick in.

The need for more depth has never been greater due to the increasing schedule of football, and Guardiola will act accordingly to rebuild a squad capable of coping.