Leeds United Red Bull Investment: Whites reassurance, Man United example and 'smarter' club view
Global energy drinks giant Red Bull have bought a minority share in Leeds and will feature as the club’s front of shirt sponsor.
Football finance expert Kieran Maguire has issued a reassuring Leeds United and Red Bull verdict, explaining how the new set-up can also create a “smarter” Whites.
Leeds announced on Thursday morning that they had sealed a ‘multi-year agreement with Red Bull for a deal which would bring in new commercial revenues as well as additional capital investment for a minority ownership stake.’
The news, though, was met with caution by some sections of the Whites fan base who fear the club losing elements of its identity amid worries that the team would become ‘Red Bull Leeds’.
United, though, were quick to point out in Thursday morning’s release that the name and logo of Leeds United Football Club would remain unchanged, a point reiterated by chairman Paraag Marathe in an interview with The Athletic.
Football finance expert Maguire also said he had no such concerns, insisting there was “no way” that would happen, and explaining how Leeds might end up with an arrangement that even Manchester United don’t have.
"I think there's far more positives than negatives,” Maguire told the YEP. "There's no way that it can become RB Leeds in the same way that we have seen at Salzburg and Leipzig and so on.
"Red Bull are part of a multi-club ownership model. I would imagine that the initial investment is going to be quite low if there is a percentage issue so that will work in Leeds' favour because if they return to the Premier League and then they qualify for Europe, there won't be the same problems that are currently facing Jim Radcliffe at Manchester United and Nice.
“He has now got two clubs in the same competition and if you look at the small print of UEFA's handbook, that could cause one or two problems there. I think that the positives far outweigh any negatives."
Pressed on how Red Bull’s multi-club ownership could maybe impact Leeds, Maguire reasoned: "I think the operational things are completely independent. But there are benefits from having a multi club ownership model because you have greater consistency and continuity so you can have sometimes what we refer to as a knowledge exchange.
"If coaches at the other RB clubs are using this system which seems to be working then the chances are they will be having meetings and Zoom conversations and mini conferences with people at Elland Road to say this is what we have found works, this is what doesn't work. The more that you talk to people who are smart, the smarter you become as a result."
Speaking to The Athletic, Marathe said: “This club is and will forever be Leeds United Football Club. It’s not going to be the Leeds Red Bulls. They appreciate that. They respect that. They know the legacy of this club, so it’s not something they wanted either. But for me, that was table stakes (a minimum requirement for a business arrangement). That’s not going to happen.”