Paraag Marathe has shared how Red Bull’s investment can help Leeds United with potential future transfers and scouting.
Leeds confirmed on Thursday morning that the global energy drinks brand have agreed to a minority investment at Elland Road, in what is the most lucrative sponsorship deal in EFL history.
This is Red Bull’s first foray into English football, but unlike with other clubs, they will not take a seat on the boardroom, and have no power to change the badge, name or stadium name.
As is well known, other clubs in their football network including Leipzig, Salzburg and New York all now have ‘Red Bull’ in their name and badges.
While that has caused some controversy in those nations, one thing they have become famed for since being established in the sport is their keen eye for young talent.
Marathe shares how Red Bull can help Leeds’ future transfers
Since their full takeover almost 12 months ago, 49ers Enterprises have worked hard to build a large recruitment team at Leeds, which now includes all of Gretar Steinsson, Jordan Miles and Nick Hammond.
Under previous owner Andrea Radrizzani, Victor Orta was a one man band when it came to controlling signings, something Leeds have since recognised was a mistake.
Given how many transfer dealings have taken place between both Leipzig and Salzburg since the takeover of Red Bull, Marathe was asked in an interview with the Athletic whether something similar could happen at Leeds.
Marathe insisted there is ‘no official interplay’ between Leeds and Red Bull’s other clubs, but did suggest due to their large scouting network, they could prove useful when it comes to identifying potential signings as an ‘extra’ pair of eyeballs, with a proven track record.
He said: “Honestly, it’s separate entities. We haven’t really contemplated that. I don’t know specifics about interactions between Leipzig and Salzburg, as you just talked about. All I know about is Leeds and what’s best for Leeds United.
“Like I said, if there’s an opportunity somewhere, or we identify a talent that might benefit us, we’ll go do that. The other benefit of this is that, as minority investors in the club, they’re another set of eyes and ears — pretty darn keen and expert eyes and ears, in seeing other players in other leagues.
“Forget even about Red Bull players. They have extra eyeballs on a lot of players. As we evaluate and do the work for this window and future windows, we can say, ‘What do you think of this player?’.
“There’s things we can learn which we otherwise wouldn’t have been able to learn. In terms of an official interplay between the clubs, there’s not one.”
Will Red Bull’s investment help Leeds with cash for signings?
LeedsUnited.News spoke to Football Finance expert Adam Williams about what Red Bull’s investment could mean for Leeds in the transfer market, and it certainly sounds like good news.
Williams stated that with it being confirmed as ‘capital investment’ into the club, it will have an impact on their ability in the transfer market, giving them more leeway when it comes to PSR. Marathe has also effectively confirmed that, too.
He said: “At this stage, the scale of Red Bull’s investment isn’t clear. It’s been described only as a ‘minority’ stake. But the statement says the deal will come with capital investment, which suggests Red Bull won’t be a ‘token’ investor.
“That will have a material impact on their power in the transfer market. They already have wiggle room in terms of FFP. This will give them more headroom – although exactly how much isn’t obvious.”