Leeds United chairman Paraag Marathe believes the value of the club’s new partnership with soft drinks giant Red Bull could be ‘the difference’ between keeping a sought-after player and being forced into a sale.
Marathe held court with The Athletic following Leeds’ play-off final defeat by Southampton, discussing at length the particular details of United’s new partnership with Red Bull.
Leeds have signed a front-of-shirt sponsorship agreement with the company, whilst also agreeing to a minority stake acquisition in the club by the energy drink conglomerate.
While chairman Marathe was reluctant to disclose the specific figures regarding Red Bull’s investment, he did state their position was a ‘significant minority stake’ in the club, which could mean anything below 50 per cent. However, it is almost certain Red Bull’s stake in Leeds is much lower given Marathe’s admission that some investors have invested a greater percentage for a larger chunk of the club.
This summer, Leeds will enter the transfer market with one goal in mind: building a squad capable of winning promotion back to the Premier League. While their 90-point haul last season would have been enough to see them promoted automatically in each of the last 25 seasons, the performance of Leicester City and Ipswich Town meant the Whites were consigned to the play-offs, which subsequently ended in defeat at Wembley Stadium.
Despite the obvious disappointment and financial implications of missing out on top flight riches this time around, Leeds believe they are in a solid enough position, in an accounting sense, to challenge at the top of the table yet again this coming season. Marathe himself predicts that Red Bull’s investment, in addition to the funds that will be made available by 49ers Enterprises and their consortium, could make a difference in Leeds’ summer transfer activity.
The 49ers’ chief also stated that while he would not place a monetary value on Red Bull’s sponsorship and minority stake, their investment in Leeds is ‘significant’ and among one of the most lucrative deals in EFL history.
“We wouldn’t have done this deal if it wasn’t significant for us,” Marathe told The Athletic. “It could be the difference between saving a player from being sold or signing a player.”
The chairman also took time to reassure supporters that changes to Leeds’ colours, badge and stadium would not be up for discussion given Red Bull’s history when marketing clubs they have a significant stake in. Equally, there is no agreement for Red Bull to take up a larger investment position in the club at this time, unlike the 49ers whose majority ownership ambitions were made clear at the beginning of their investment journey with previous Elland Road custodian Andrea Radrizzani.
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