Highlights
- Red Bull have taken a minority stake in Leeds United and will sponsor their shirts from the 2024/25 season.
- 49ers Enterprises remains the majority owner and chairman Paraag Marathe will continue to call the shots at Elland Road.
- Liverpool and Chelsea are interested in forward Crysencio Summerville and believe they could land him in a cut-price deal.
Red Bull has taken a minority stake in Leeds United and become their new front-of-shirt sponsor from next season.
“Red Bull’s addition is a historic milestone that will further empower the club to reach its full competitive potential,” said Leeds chair Paraag Marathe.
“The ambition to bring Leeds United back to the Premier League and establish themselves in the best football league in the world fits very well with Red Bull,” added Oliver Mintzlaff, Red Bull’s CEO of corporate projects and investments.
Red Bull’s influence at Elland Road
Leeds won’t become a feeder club
Red Bull’s stake is significant, and the fee paid will increase if Leeds are promoted. The exact percentage or amount is undisclosed, but it’s understood reports suggesting the deal is worth £200m, with £60m paid in the first year, are wide of the mark.
There are no plans for Leeds to become a feeder club within the Red Bull model, which includes Leipzig and Salzburg along with MLS side New York Red Bulls and Bragantino in Brazil. Leeds are naturally open to doing business with Red Bull clubs, but this will only be done on merit rather than dictated by their new strategic partner.
Red Bull attracted controversy in 2005 when they bought Austria Salzburg, switching the team name to Red Bull Salzburg. The crest and stadium name were also changed.
But Red Bull has no path to full ownership, and both the club and Elland Road-stadium names, and Leeds’ colours, will remain the same. Some fans are nonetheless concerned about the Red Bull logo on the front of their shirt because it has red in it. This is an unpopular colour among the fan base due to Leeds’ rivalry with Manchester United.
Power structure
Paraag Marathe still ‘calling the shots’
Leeds majority owner, 49ers Enterprises, only assumed control last summer, paying £170m. It’s a complicated structure, with actors Russell Crowe and Will Ferrell, and golfers Jordan Spieth and Justin Thomas, among those holding small stakes, albeit with no day-to-day influence.
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Red Bull are a different class of investor compared to those celebrities. They will therefore have some input, but 49ers Enterprises, and Marathe in particular, are still calling the shots. Leeds view Red Bull’s investment as a sign they are immediately bouncing back from Saturday’s Playoff Final loss to Southampton at Wembley. And the investment does help ease Leeds’ financial concerns.
Nonetheless, there is still pressure to sell this summer. The last set of accounts show Leeds spent £170m on incoming transfers including Brenden Aaronson, Rasmus Kristensen, Marc Roca and Max Wober.
This has led to suggestions the club need £100m in outgoings to balance the books. The number may not quite be that high given the departures of Tyler Adams and Luis Sinisterra to Bournemouth will both reflect on this year’s accounts, but Marathe has already conceded sales are needed.
“We have the funds we need to do what we need, but there will need to be some trade-offs because of profit and sustainability rules. I can’t talk about specific players. It’s too early right now. But there are certain things we need to do, and we will make sure we are fully compliant.”
Summerville and Gray interest
Liverpool and Chelsea eye cheaper deal for £35m forward
Crysencio Summerville is likely to depart having scored 21 goals last season and been named the Championship Player of the Season by the EFL. Liverpool and Chelsea have both discussed him internally. Leeds value Summerville at £35m, although suitors will be trying for slightly cheaper and looking to take advantage of Leeds’ failure to get promoted.
Liverpool Could Make ‘Approach’ for Summerville
Liverpool are set to end their interest in Newcastle’s Anthony Gordon to focus on Leeds United winger Crysencio Summerville.
Archie Gray, although happy at Leeds, is in demand as well. Liverpool, Arsenal, West Ham and Brighton have all been tracking him for quite some time. The 18-year-old’s preference is to stay at Leeds, but a sale can’t be entirely ruled out given Leeds’ urgency to raise funds.
There will inevitably be a cost for Leeds of not getting promoted, felt both on and off the field, but the Red Bull investment shows 49ers Enterprises are building strong strategic and commercial foundations which should allow Leeds to brace themselves for the financial impact of staying in the Championship and set them up for long-term success.