I'm gonna write this without any evidence to back it up apart from seeing him on tv and the odd snippet of news.
I think the death of his Mother had a huge effect on him and at times he's seemed un-interested in football.
Add to this his, and City's, treatment in the media, a lack of recognition for the club and teams efforts and general snidyness about the club and i'm guessing he was having a hard time deciding his next move.
I've already started to see glimpses of the old Pep in the last few games, although his cheeky assassins smile is yet to appear, so i've come to the conclusion that he's got his head straight and is well up for the fight. The signing of this contract seems to say the same.
COME ON CITY.