For much of the footballing world, Jürgen Klopp’s move to Red Bull would have come as a surprise, if not disappointment.
Klopp is seen to most as a figure who would rebel against the idea of multi-club ownership and every uncertainty that it brings to the world of football.
However, having now taken up the role of Head of Global Soccer at Red Bull, is this a sign of the times? Are the likes of the Red Bull and City Football Group business models the ‘new normal’ in a sport already clouded under a lack of morals and suspicion of corruption?
Red Bull’s Controversial Control
Having conquered the world of extreme sports, the energy drink company first entered the world of football in 2005 in Salzburg before buying the license to Leipzig-based side SSV Markranstädt in 2009.
The lower league club went under a complete transformation which included changing the team colours (to white and red of course) and changing the name to Rasenballsport Leipzig, or RB Leipzig for short. A clever marketing tactic as many fans around the world believe that RB stands for Red Bull.
Within six years, the club had sprang from lower league mediocrity to the Bundesliga where they finished second in their first-ever campaign. Unsurprisingly, every club they’ve come across along the way has protested their existence as it stands for everything German football is not.
Traditional means something to most German football fans. As does the 50+1 rule which ensures that 51% of the voting rights at every club are given to the members. Local and Global fans can become official members of the club, usually for reasonable yearly prices of around €60.
In order to maintain control of how the Red Bull enterprise was run at Leipzig, the company exploited the rule.
RB Leipzig has a membership programme but the number of members is capped to a very low number and yearly memberships are closer to the €1,000 mark. What’s more, applications for membership are often rejected. For example, as of 2014, the club only had 11 members. This ensures that Red Bull don’t have to face interference from members who oppose what is happening in the club.
Compare this to Bayern Munich where the membership stands at over 200k and you have just one of the reasons why they are so hated in German football.
Global Presence & Benefits
Since the success of Rasenballsport Leipzig and RB Salzburg, the Red Bull group has taken over clubs in the United States, Brazil, and Ghana.
There are many reasons for this. Firstly, it enables Red Bull to have markets across the globe and showcase their brand to millions more people each week. Additionally, it allows the football clubs to sign emerging talent from around the globe before signing them to ‘bigger’ clubs the company owns.
For example, since 2010, a total of 17 players have moved from Red Bull Salzburg in Austria to RB Leipzig in Germany. Leipzig have paid a total of just under €100m in transfer fees which seems like a lot but when it’s owned by the same group, it doesn’t seem as much of a loss.
Similarly, the City Football Group own 13 club worldwide including Manchester City, New York City FC (USA), Melbourne FC (Australia), Yokohama F. Marinos (Japan), Montevideo City Torque (Uruguay), Girona (Spain), Mumbai City (India), Sichuan Jiuniu (China), Lommel (Belgium), Troyes (France), Palermo (Italy), Bahia (Brazil) and Club Bolivar (Bolivia).
The City Football Group’s main focus is Man City with the other teams developing players who may one day be good enough to play for the Premier League side.
As reported by ESPN in 2023, UEFA research showed that more than 180 clubs worldwide were part of a multi-club structure. In comparison to 2012, there were just 40 – leading many UEFA officials calling for a change to rules to ensure that multi-ownership clubs don’t become the new normal and have a monopoly over the sport.
Here To Stay
Clearly, the power of multi-ownership football clubs doesn’t show any sign of stopping. There will be many people around the world who will see the benefits but perhaps the more traditionalist will argue against it.
The top leagues in football, in particular Europe, are becoming increasingly murkier in terms of who runs what with human rights and morals often a second thought.
There was a lot of opposition against the idea of a European Super League but you could argue we’re already there, especially in England.
Perhaps one day there will be a watershed moment where there is a split within the game and one faction goes down the multi-club ownership route and the other a more traditionalist view where there is more regulation on owners.
However, like it or not, the multi-club ownership model is here to stay and is only getting stronger, richer, and more powerful each year.
The news of Jürgen Klopp’s involvement is another example of the ownership model encompassing everything in its wake.
GGFN | Jamie Allen
