Phil Hay has shared some more detail about what Paraag Marathe has told him about Red Bull’s investment in Leeds United.
The global energy drinks brand Red Bull agreed to the most lucrative sponsorship in EFL history last week, becoming Leeds United’s official front-of-shirt sponsor. Red Bull is replacing SBOTOP, marking their first involvement in English football, following investments in clubs like Leipzig and Salzburg.
However, unlike with those clubs, Red Bull will not have a seat in the boardroom at Elland Road, meaning they have no authority to change the team’s name, stadium, or badge.
Despite the brand’s controversial reputation, this sponsorship appears to be a positive move for Leeds. Football finance expert Adam Williams told LeedsUnited.News that it will provide the club with more financial flexibility in the market.
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In the days following the announcement of Red Bull’s sponsorship deal, Leeds chairman Paraag Marathe discussed with the press how the partnership could benefit the club moving forward, especially if they get promoted.
Marathe confirmed the claims made by football finance expert Adam Williams, emphasizing that the sponsorship will provide Leeds with more financial leeway in the transfer window. Additionally, Marathe highlighted that Red Bull’s extensive scouting network could be advantageous for Leeds in identifying potential targets.
On the latest episode of the Square Ball Podcast, Athletic journalist Phil Hay shared further insights from his conversation with Paraag Marathe about the Red Bull sponsorship deal.
Hay revealed that if Leeds win promotion next season, there will be a “significant uplift” in the annual value of the sponsorship. He said, “There was never any doubt when 49ers came in they were going to try and drive Leeds as forward commercially as they possibly could, and that is what they are doing.
“Interestingly, and this is not a surprise, but Marathe was saying there is quite a significant uplift with the deal as well when/if they get promoted.
“It will be worth a lot more and given that SBOTOP was somewhere in the region of £7m a year, it wouldn’t surprise me at all if Red Bull was in excess of that. It is a good deal financially.”
Leeds are developing an off-field structure to become a powerhouse. Despite the disappointment of missing out on promotion, the 49ers are putting all the building blocks in place for Leeds to achieve long-term success.
When Leeds were promoted under Andrea Radrizzani, the club lacked the funds and structure to continue improving, which contributed to their relegation. However, under the 49ers’ leadership, the situation is different. Leeds now have a much larger recruitment team and are far more attractive to potential sponsors.
The hope is that these behind-the-scenes efforts will translate to on-field success, allowing Leeds to flex their financial muscle as a Premier League club.