Phil Hay has provided additional information on what Paraag Marathe informed him about Red Bull’s investment in Leeds United.
Last Monday, the global energy drink brand agreed to the most valuable partnership in EFL history, becoming Leeds’ official front-of-shirt sponsor.
Red Bull will take over the space left by SBOTOP in their first incursion into English football, following their investments at Leipzig and Salzburg, among others.
Unlike those clubs, Red Bull will not be taking a seat in the boardroom at Elland Road, thus they will not be able to modify the name, stadium, or badge.
Despite the controversy surrounding the brand, it appears to be a positive move for Leeds, with Football Finance specialist Adam Williams exclusively telling LeedsUnited.News that it will give them more market clout.
How would Red Bull’s sponsorship of Leeds alter if promoted?
In the days following the news of Red Bull’s contract, Marathe spoke with the press about how Red Bull will benefit Leeds in the future.
The Leeds chairman backed Williams’ remarks that it will aid them throughout the transfer window. He also stated that their extensive scouting network could help Leeds find suitable targets.
And on the most recent episode of the Square Ball Podcast, athletic journalist Hay revealed what else Marathe informed him about the arrangement.
Hay claims that if Leeds wins promotion next season, there will be a ‘significant increase’ in its annual value.
He stated, “There was never any doubt that when the 49ers came in, they would try to drive Leeds as far forward commercially as they could, and that is exactly what they are doing.”
“Interestingly, and not surprisingly, Marathe stated that there is a big uplift with the arrangement if/when they are promoted.
“It will be worth a lot more, and knowing that SBOTOP was valued around £7 million each year, I wouldn’t be surprised if Red Bull paid more. “It’s a good deal financially.”
Leeds is strengthening its off-field structure to become a powerhouse.
Though the disappointment of losing out on promotion persists, the 49ers are laying the groundwork for Leeds to become a long-term success.
Leeds were promoted under Andrea Radrizzani, but they lacked the funding and organization to continue growing, therefore they regressed.
The same cannot be said for the 49ers, who are in charge. Leeds now has a considerably larger recruitment team in place and is certainly more appealing to potential sponsors.
Hopefully, the work done behind the scenes will be reflected on the field, allowing them to fully exercise their financial muscle as a Premier League team.
