Promotion hopefuls Leeds United could be in line for a major financial boost following their “multi-year agreement” with Austrian soft drinks giant Red Bull
Football finance expert Kieran Maguire has described Leeds United’s deal with Red Bull as “very lucrative”, claiming it will benefit the club both financially and commercially in the long term. The Whites announced a “multi-year agreement” with the Austrian soft drinks giant at the end of May following their promotion near-miss.
Red Bull have become minority shareholders and front-of-shirt sponsors in their first foray into English football. The deal has been labelled in some quarters as the “best ever seen in the EFL”.
However, some United fans have expressed their concerns over Red Bull’s track record in altering club identities, although chairman Paraag Marathe insists no such changes will happen this time round. Some supporters have voiced their displeasure over the home kit now having a red-coloured sponsor due to its associations with arch rivals Man United.
Maguire, author of well-known book ‘The Price Of Football’ and Liverpool University football finance lecturer, told TBR Football: “While some Leeds fans might be mildly miffed about the prospect of having any red on their shirts because of the rivalry with Man United, the vast majority are pragmatic. They will know that if you’re going to be sponsored by a company called Red Bull, having the red sponsor is part of the overall deal.
“It is going to be very lucrative and it will help catapult Leeds’ profile as an international brand. That is going to bring a lot of money into the club, so I’m sure they will see that the benefits outweigh the cultural costs. The arrangement will be very much tiered and linked to the success of the club on the pitch.
“In the Championship, it’s a good deal if you’re getting anything over £1million. This deal is likely to be worth seven or eight times that as a minimum. If Leeds can get to the Premier League and perform well, we could be getting closer to £10m. The club has a large fanbase and the nature of Red Bull, who spend a lot of money on marketing, is that they want to be associated with vibrant and progressive brands.“
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