Red Bull buys a stake in Leeds, becomes the club’s shirt sponsor

Red Bull has officially acquired a minority stake in Leeds United. The English side just missed out on winning promotion back to the Premier League last weekend. As a result, the Whites will once again compete in the second-tier EFL Championship for the 2024/25 season.

Red Bull’s move comes less than a year after 49ers Enterprises completed a full takeover of Leeds last summer. The American investment group is currently the private equity arm of the NFL’s San Francisco 49ers. The firm is essentially filled with various individuals as well as the American football team, who collectively control the football club. Actor Will Ferrell recently joined as an investor.

49ers Enterprises previously acquired a 44% minority stake in Leeds in 2018. However, they eventually took over the team by purchasing Andrea Radrizzani’s remaining shares in July 2023. The deal cost the new ownership around $215 million.

Red Bull also agree to a multi-year contract with the club to be the shirt sponsor

By becoming a minority owner, Red Bull will also be the official Leeds shirt sponsor. The energy drink is set to replace the club’s previous contract with BOXT. The change in sponsorship is quite an increase in value compared to the previous transaction.

“I am delighted that Red Bull is joining us to build a bright future for Leeds United and share our deep respect for this truly special club,” said Paraag Marathe, chairman of Leeds United.

“As chairman, our consortium of investment partners will be invaluable to me as we approach this important moment for the club, now and into the future. The addition of Red Bull is a historic milestone that will further empower the club to reach its full competitive potential.”

“We are delighted to be an important part and partner of Leeds United,” said Red Bull CEO Oliver Mintzlaff. “A club that is certainly one of the biggest in England and has a rich and successful history. The ambition to bring Leeds United back to the Premier League and establish themselves in the best football league in the world is a great fit for Red Bull.”

Corporation joins the team as Leeds have potential financial problems

Leeds join a series of football teams that fall under the Red Bull umbrella. This long list includes New York Red Bulls, RB Leipzig and Red Bull Salzburg. However, the English side will not be changing their official name to include the branding of the energy drink.

Although the company is just joining Leeds as a minority investor, the move should boost the club’s revenue. The exact slice of the pie the company will get is unclear. However, Red Bull will almost certainly inject millions of dollars into the Yorkshire outfit.

Red Bull has received a lot of criticism since it started buying football clubs almost 20 years ago. Many do not like the idea of ​​corporations buying clubs, changing their historical identity and investing huge sums of money into them to make an instant impact.

The summer transfer window will be a good indication of how much Red Bull have in Leeds. In their first season as majority owners, 49ers Enterprises were careful with their spending this past summer. The Americans generated a small profit in transfer business during the 2023/24 campaign. Leeds generated a significant chunk of funds by selling USMNT star Tyler Adams to Bournemouth for around $29 million.

However, Leeds could find themselves struggling to adhere to England’s Profit and Sustainability (PSR) rules. The club may part ways with several key players this summer. However, the introduction of Red Bull could help the club’s financial problems in the long run.

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