The impact Red Bull’s investment could have on Leeds United’s summer transfer window

On the back of taking over the likes of Leipzig, Salzburg and New York, Red Bull are certainly controversial when it comes to their forays into the world of football.

However, Phil Hay has confirmed that they will not take a seat in the boardroom and therefore have no power to change the club’s name, stadium or badge.

Instead, Red Bull will take their place as shirt sponsor, replacing BOXT in what is believed to be the biggest sponsorship deal in EFL history.

Paraag Marathe has already confirmed that Leeds will have funds to spend

It has been well documented that, following Leeds’ failure to win Sunday’s play-off final, key players will need to be sold to meet the EFL’s PSR constraints.

Due to the reduction in parachute payments in the second season after relegation, they will become stricter for Leeds this summer.

However, chairman Paraag Marathe has confirmed that funds will be available for Daniel Farke to spend in the coming months, saying Leeds are in a good position to invest.

Leeds will also continue to press ahead with plans to expand Elland Road, which is further evidence of the strong position 49ers Enterprises has at the club off the pitch.

What Red Bull’s investment means for Leeds’ summer window

LeedsUnited.News spoke exclusively to Football Finance expert Adam Williams about what Red Bull’s investment will mean for the next summer window.

He says that while Leeds already had “headroom” anyway in terms of PSR, Red Bull’s “capital investment” will only benefit them in terms of their “power” in the market, even suggesting a potential “player trade” relationship worldwide. their soccer network.

He said: “At this stage the extent of Red Bull’s investment is not clear. It was only described as a “minority” stake. But the statement says the deal will come with equity investment, suggesting Red Bull will not be a “signal” investor.

“This will have a material impact on their power in the transfer market. They already have room to work in terms of FFP. This will give them more room – although exactly how much is not obvious.

“Additional commercial income from the T-shirt business will probably be the biggest driver at present. Leeds and Boxt’s previous shirt deal was worth £6m a year when they were in the Premier League, although the value will be reduced with buy-out clauses in the second tier.

“The deal with Red Bull will be a significant increase on that figure, regardless of the league Leeds are in. It will likely be the biggest shirt deal in league history. Probably over £8m, with that figure rising if they win promotion.

“The commercial merits for Red Bull are also clear. Leeds are a huge brand and rank in the top 20 clubs in the world for shirt sales, even in the Championship. They will also benefit from sharing knowledge and resources across the Red Bull Football Network, with a player exchange relationship possible.”

Similar topics