Thursday 12 May 2016

Red Bull's Global Football Empire




Most people are aware of the vested interest in motorsport, particularly Formula One, of the famous energy drink company, Red Bull, however it's the football that has been grabbing the headlines recently.

With a budget exceeding every other side in the 2. Bundesliga by almost €10m it is perhaps no surprise that RB Leipzig have won promotion to the top tier of German football, just six years after the club was 'formed'. This promotion could launch Red Bull's 11 year old football empire into the stratosphere.

RasenBallsport Leipzig differs from most of the other clubs in Germany as it is owned by the energy drink company, Red Bull contrary to the fan-ownership model ubiquitous in German football. The club was formed in 2009 when Red Bull purchased the playing licence of fifth division side, SSV Markranstadt and have swiftly sailed through the divisions since then. RB Leipzig won the 2012-13 German fourth tier without losing a single game and became the first team since the introduction of 3. Liga (third tier) to win promotion after only one season. Even with the wealthy company financing them it is an achievement to revel in.

An Emil Forsberg goal coupled with an own goal gave the side from Saxony a 2-0 win over Karlsruher on Sunday to secure an automatic promotion spot to the Bundesliga. Like with many newly promoted sides, the summer transfer window with be crucial to determine whether the side will remain in the top tier next season. Bild newspaper is already reporting that the club are looking to spend heavily with Basel's Breel Embolo and Kevin Volland among the rumours. Despite guiding the side to promotion, manager, Ralf Ragnick has stepped back from his managerial role but will remain at the club as the Director of Football. Instead, the reigns have been handed to Ralf Hasenhuttl who successfully kept Ingolstadt in the division this season.

Recently, FourFourTwo published a feature article in their monthly magazine on the unusual German club, featuring very strong opinions of other German supporters. Many claim that the club break the '50+1' rule set for the clubs in the German leagues. The 50+1 rule ensures that the majority of the club cannot be owned by a private investor, but instead by members that pay an annual fee. Up to 49% of the club can be owned by an investor, while the rest is distributed between paying members, giving them the power to veto crucial issues decided by the investor if it goes against the morals of the club e.g.. ticket pricing. While RB Leipzig aren't breaching the rule, it's safe to say that it is being seriously stretched. Compared to the 200,000 members of Borussia Dortmund and Bayern Munich each paying around €50-€100 per annum, Die Bullen, have only 11 members paying a princely €800 a year. Oh and they all work for Red Bull.

They're not the only team that Red Bull has a vented interest in. The worldwide company also own New York Red Bulls of the MLS and Red Bull Salzburg of the Austrian top tier. In a similar way to which RB Leipzig was formed, Red Bull bought the paying licence of Austria Salzburg, immediately changing the badge, name and kit from violet and white to one resembling a can of the energy drink with the logo splashed across the front of the jersey. Obviously, the supporters of the original club were not too pleased about this decision so decided to set up a new team SV Austria Salzburg currently plying their trade in the second tier of Austrian football.

Despite being widely hated in the footballing world, the unusual model has brought a plethora of success to the Austrian outfit - seven league titles in ten years - and has been greatly appreciated by the fans who stuck around. In an interview with City A.M. in April 2015, a member of the Red Bull Salzburg fan group, 'the Raging Bulls' commented that "it was more of a rescue that a takeover" and that "the club was more professional and the communication of the fans is excellent." Before the takeover, the club as struggling both physically and financially. Red Bull are also in charge of various clubs in lower divisions of Austrian football, acting as feeder clubs to the main 'project' in Salzburg.

New York Red Bulls have not been as successful as their cousins in Austria, winning two Supporters' Shield and the Eastern Conference regular season four times. In Brazil a club was set up in the state of Sao Paulo in 2007. In the nine years the club has been in existence, it has grown to feature in the top flight of the Sao Paulo State Championship as well as finishing runners up in the Copa Paulista in their inaugural season.

There were rumours of a potential takeover of a club in England, either in the Premier League or Championship, most recently as 2014, with clubs such as Leeds United, Crystal Palace and Everton touted as future fizzy drink clubs. However these rumours were soon quashed with assistant sporting director, Lisa Hohensinn stating, "Red Bull will not make any investments in English football clubs." Even with this denial reports always surface from time to time stating about an English takeover. It would change the outlook of English football if these reports ever did come to fruition.

Red Bull largely started to invest in football clubs as a form of marketing and to attach their product to successful brand that they created. In 2011, Red Bull owner Dietrich Mateschitz said, "We are developing RB Leipzig with the aim of playing in the Bundesliga in three to five years. We also want to get into the Champions League and be successful there." With one half of this statement achieved, the new franchise can set their sights on future domestic successes and eventual European glory. No doubt the Head of Global Football Operations, Oliver Mintzlaff, has had many dreams about total total domination in the football world.

While the model is not proving too popular among the 'traditional' football fans, it is undoubtedly getting some reward out of their efforts. Their Austrian outfit remain the most successful outfit with New York Red Bulls close behind. Leipzig have the potential to be big, due to the profile of the league that they are playing in, and an appearance in the Champions League may just be around the corner. This is just the beginning for Red Bull's Global Football Empire.

No comments:

Post a Comment

Thanks for reading! I'd like to hear your thoughts on what you have read...