Paris FC was founded in 1969, merging with Stade Saint-Germain to form Paris Saint-Germain (PSG) in 1970. Only two years later, Paris FC separated from PSG to form an independent club.
To date, the club’s only real success of note on the pitch has been winning its group in the Championnat de France Amateur in 2006. The last time the club competed in the top division (Ligue 1) of French soccer was in the 1978-79 season. Now professional, Paris FC are currently battling for top spot in Ligue 2.
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Earlier this month, French billionaire and LVMH chairman Bernard Arnault joined forces with Red Bull to secure a controlling stake in the French second-tier soccer club, a move that would be Red Bull’s sixth soccer team investment.
The partnership being finalized will allow Arnault’s holding company Agache to use its “entrepreneurial vision” and “economic development and brand influence”, whereas Red Bull will bring more of an advisory element into the running of the club, using its experience from operating several clubs across the globe.
Current Paris FC president Pierre Ferracci expressed his delight at the potential takeover by stating: “The arrival of Agache in our club, supported by Red Bull, as the new owner is a unique opportunity that I immediately accepted and welcomed with greatest enthusiasm.”
The news of the imminent Paris FC takeover will be a big relief to many shareholders in a club that recently documented a loss of roughly $10 million before player trading.
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By GlobalDataL’Équipe has reported the club could be set to receive an injection of funds in the range of $108-216 million. With the club starting the season well and on course to compete for promotion, this certainly looks like an exciting project for the new ownership group and for the fans of the club who hope to one day compete toe to toe with their Parisian rivals PSG.
Over the past few weeks, Red Bull must have been delighted with its progress in developing soccer operations having first appointed the former Liverpool FC and Borussia Dortmund manager Jürgen Klopp as its new global head of soccer.
This move was a real PR coup as Klopp is greatly respected within world soccer and by sports fans globally, which is why his move to Red Bull was heavily criticised in some quarters in Germany.
Secondly, Red Bull will feel that this new ownership opportunity to work alongside Arnault, with his immense financial resources, will benefit the RB brand massively as it can combine its sports management and talent development experience with the backing of France’s richest family to grow Paris FC into a club that aims to challenge PSG and make Ligue 1 truly competitive again.
Over the past 12 months, Red Bull has pushed forward in its determined strategy to become one of the leading multi-club ownership groups, rivaling the likes of the City Football Group (CFG).
In May 2024, the energy drink brand purchased a minority stake in the English Football League club Leeds United. Red Bull has become the club’s new front-of-shirt partner and exclusive energy drink partner.
This project is seen as a very attractive venture for Red Bull as it gains a strong presence in one of the world’s top business cities, which should present commercial benefits as the club strive to attract the sponsorship of other big brands thanks to good on and off-the-field performances.
Going forward, Paris FC will have access to a huge array of commercial connections through Red Bull and LVMH being involved in numerous sponsorship agreements across the globe.
GlobalData estimates that across 2024, LVMH is spending $153.38 million on sponsorship agreements that cover the European, Americas and Asian markets. Only recently the brand agreed a substantial 10-year agreement with Formula 1, worth $1 billion.
Several LVMH brands, including Tag Heuer, Moët Hennessy, and Louis Vuitton, will receive prominent exposure across F1 activities. With Red Bull also involved in close commercial partnerships with numerous sports properties and brands globally, Paris FC should be an intriguing proposition for new brands looking to associate themselves as the club’s exciting project becomes a reality.
Multi-club ownership continues to be a very controversial ownership style, as many feel it erases the history of clubs with their new purpose being a feeder side to the parent club.
However, those in favour of this model believe this system allows clubs facing financial ruin to be saved from extinction and for other smaller clubs to receive investment which can put them on a path to the best possible standard.
CFG has led Girona FC on a path that took it from being anchored in LALIGA 2 or the lower half of LALIGA to competing for the LALIGA title across the 2023-24 season. This example proves that there is a potential pathway for Paris FC to turn into one of the best-performing clubs in France.
This new and interesting development could bring a fresh dynamic to French soccer, as Paris FC will have long-term aspirations under the ownership of both Arnault and Red Bull to become a real force in French and European soccer.
The decision-makers of French soccer will be quietly optimistic that this move will bring new interest to their domestic game. It has been hampered by negative press for several years with many believing PSG are far too dominant, while crowd incidents reported globally have created a bad look for the league.
If Paris FC can progress on the pitch and there is a revitalized Paris derby with PSG, the LFP may achieve an improved status and command a higher price for its future domestic and international media agreements.
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