Red Bull have agreed to purchase a minority stake in Leeds United.
The global soft drinks giant has sealed an investment which will see them join Leeds’ existing ownership group 49ers Enterprises, who only completed their full buyout of the club last summer.
The 49ers’ first full season in charge came to a disappointing end on Sunday as Leeds were beaten 1-0 by Southampton in the play-off final, consigning them to another year of Championship football.
Chairman Paraag Marathe has already come out and publicly set out of his intentions for the season ahead, confirming there will be money available for Daniel Farke to spend in the transfer market.
Leeds will obviously be restricted by the EFL’s PSR constraints and key sales will have to be made, but this investment by Red Bull is only likely to strengthen the club’s financial position.
Hay shares whether Leeds will have Red Bull in club name
Red Bull already have plenty of experience when it comes to investment in global sporting brands, with Leipzig, Salzburg and New York Red Bulls among just some of the football clubs they own.
They also have their own major F1 team, and according to the Athletic, talks between them and the 49ers have been going on for some time behind-the-scenes.
As fans will be well aware, sides such as Leipzig and Salzburg now have Red Bull incorporated into their name as a result of the investment in which they have received from the energy drinks brand.
However, that will not be the case with Leeds, as Red Bull are only purchasing a minority stake, with the 49ers still very much the people at the front and centre of the club’s operations.
It said they will not be given a seat boardroom, and will have no power to change the club’s name, stadium or shirt colour. They will, however, be the new kit sponsor, replacing BOXT, who was the main one last season.
What has Marathe said about Leeds’ financial position?
As mentioned, Marathe addressed the press earlier this week following Leeds’ failure to return to the Premier League.
He seemed very confident, despite the EFL’s PSR rules, that Leeds were in a good position in terms of investment, and this latest news from Red Bull is only going to strengthen that.
He said: “We’re well capitalised from an investment standpoint. We have the funds to do what we need to do. The reality of being in the Championship is that PnS plays a role. There will naturally need to be some trade-offs.
“But we have a really good team and it’s not just outs. It’s ins as well, looking at scouting opportunities for us. We’ll have to make some trade-offs because of PnS, but we have the investment commitment to do what we need to do.”