Leeds United Red Bull ownership update revealed after shareholding reduction claim — YEP 23/5/25
By Joe Donnohue
The YEP understands Red Bull GmbH's stake in Leeds United
has not been diluted following a £120 million cash injection from majority
shareholders 49ers Enterprises.
A report in City AM claimed the energy drink giant had taken
the decision to dilute its share in Leeds after a share issue by majority
owners 49ers Enterprises.
The club have raised new investment worth approximately
£120m through the issuing of new shares to existing investors following
promotion to the Premier League with the funds earmarked for Elland Road's
redevelopment and potentially summer transfer expenditure.
Share issues are designed to bolster a company's spending
power, improving cash flow, enabling the business to invest and grow. It is an
economic move which has advantages over taking out a bank loan, for example, as
the business is not required to pay back the funds, nor is interest charged.
Red Bull are understood to hold an approximate 10 per cent
share of the club after agreeing a minority ownership deal in conjunction with
a lucrative, multi-year shirt sponsorship this time last year.
Premier League and English Football League clubs are
obligated to publicly list investors with a 'significant interest' in the club,
namely at the 10 per cent mark. The company do not have board representation at
Elland Road, nor was an aforementioned significant interest declared by the
Whites at the time of their share acquisition.
Sources with knowledge of the Red Bull agreement state Red
Bull have maintained their original shareholding, believed to be just shy of 10
per cent.
Contrary to reports, it is unlikely the business-savvy
drinks corporation would reduce their shareholding upon the club's return to
the Premier League, a division in which greater exposure for the brand will
undoubtedly be achieved.
Red Bull are well-backed, well-funded and acutely aware of
the relevant legislation relating to leagues in which their teams play. The
group have previously been known to find loopholes in order to maximise brand
recognition, such as in the case of German Bundesliga club RB Leipzig's
rebranding from SSV Markranstadt to 'RasenBallsport Leipzig' in 2009.
The German Football Association (DFB) prohibit corporate
branding in club names, therefore the company could not rebrand Markranstadt as
'Red Bull Leipzig' following the purchase of its playing licence. Instead,
'RasenBallsport', which directly translates to 'lawn ball sports', was adopted,
and the team became known colloquially as RB Leipzig, preserving the drinks
company's corporate identity.
The value of individual stakes belonging to 49ers
Enterprises' numerous investors have not been made public since the San
Francisco-based consortium acquired the club, although Red Bull are understood
to be the foremost minority stakeholder in the club.
Leeds are also expected to receive more from their active
sponsorship agreement with Red Bull this coming season, following promotion to
the Premier League. The company retains its strong brand presence throughout
Elland Road and on digital content produced by the club.