Another power play from the energy drink company into the football arena as Red Bull, who are no stranger to ownership within the sports industry, are in line to buy 15% of Ligue 2 side Paris FC. The side currently sits atop the Ligue 2 table with aspirations of competing in the top French league for the first time since the 78/79 season.
The energy drink company has made waves into the sports industry for well over two decades now, with the ownership of two F1 teams. Football teams in the US, Austria, Germany, and Brazil, along with the sponsorship of many major viral sporting stunts, also . The company recently acquired a minority stake in Leeds United as the Championship side aims to return to the Premier League after a 2-year hiatus. Leeds chairman Paraag Marathe stated that the club "will never be the Leeds Red Bulls", following questions about Red Bull. "We will forever be Leeds United Football Club". The investment is instead seen as debt-covering, stabilising the club's building transfer deficit. The Whites have also given up their previous front-of-short sponsorship, with all kits now adorning the iconic fighting bulls.
LVMH, on the other hand, is a new player in the sports game. The French conglomerate only last week announced a 10-year partnership to become a main sponsor of Formula One, a deal that will reportedly cost the luxury brand just under €100 million a year. The company also recently sponsored the 2024 Paris Olympics and were bestowed the responsibility of making the athlete's medals through their jeweller, Chaumet. LVMH, headed by Bernard Arnault, will take on a 55% ownership stake in Paris FC, with future aims of buying the 30% share held by current club president, Pierre Ferracci.
Red Bull turned heads last week with their capture of Jurgen Klopp's talents as their new 'Global Head of Soccer', a role very few expected him to end up in following his departure from Liverpool FC. This move has not gone down well with both the Borussia Dortmund and Mainz faithful. Both Bundesliga clubs were previously managed by Klopp, and are rivals of Red Bull-owned RB Leipzig. Many fans expected Klopp to continue with a new managerial job following his success with Liverpool, with murmurs of international management on the horizon. The shock of the appointment gives credence to Red Bull’s ambition and adds to what is shaping up to be a significant year for the energy drink company’s control within the world of sport.
But why Paris FC? The club have not competed in Ligue 1 for almost 50 years, and in that time have yo-yoed around in the lower divisions, never looking likely to compete in the top tier. However, at the start of this season the club look a new side, having won six of their opening eight games and leaving just one point separating The Parisians from first-place Lorient. Paris Saint-Germain, on the other hand, have dominated the French pyramid since Qatar Sports Investment took ownership in 2011, having had complete control of Parisian bragging rights over Paris FC since. LVMH and Red Bull may be looking to turn the tide, the two companies made a combined revenue of €96 billion in 2023, an income that if only a fraction of is invested into the club, Paris FC's fortunes could change quickly, and start to worry their usually untroubled neighbours.
Red Bull may not care for a return on their investment from the sporting side, but rather from the trickle-down effects of what will likely add to their energy drink sales. Red Bull make roughly 90% of their revenue from the sale of their energy drinks, with the other 10% coming from their sports teams, content creation and merchandise. The core aim of Red Bull’s sports teams, beyond diversifying their portfolio, has been to get more eyes on the brand and to sell more drinks. The brand appears in the names of all of its sports teams, it is the main shirt sponsor of its football teams, it is the primary name of the extremely successful F1 team and the imagery of the Red Bull has become iconic within the sporting world.
The move appears to be another step of the Red Bull branding slowly colonising world sports and pulling attention towards its drinks. The French Ligue 1 sits within the top 3 most watched leagues in world football, and Red bull now place themselves first in line as a sponsor of the leagues possible newest club, a play that may turn out to be a shrewd one in only a couple years.
