Red Bull was just an energy drink at first, but then everything changed. Now, Red Bull is known as a global brand associated with many sports. But, why is that?
This is one of the most innovative companies in the world, and that can be seen because they are the first energy drink in Europe. One of the company founders tried some energy drinks while he was in Asia, and he immediately liked that idea. So, he made a company and made millions from selling the first global energy drink.
Now, Red Bull is establishing itself as a global brand with its core values, and their success is groundbreaking. So, there is only one question now. Why invest in football?
You can sell a limited amount of cans
The company was selling a million cans per day in 1997. Since then, they have reached a production of 7.5 billion cans per year, which created a huge revenue. To be exact, the company’s revenue from selling a drink is more than 6 billion dollars.
That seems great, but since 2012 the company’s revenue growth slowed substantially. So, without much space to expand its energy drink business, Red Bull turned to sports. They first started to sponsor growing new sports such as extreme sports.
Their biggest event was Felix Baumgartner’s jump from space to the land. They spent 50 million dollars on that project, but global reporting about the event was worth 6 billion dollars!
What football gives to Red Bull?
Relying only on one product is risky, and a very successful company could go bust very quickly. So, Red Bull decided to diversify its revenue sources, and football is perfect for that.
They own New York RB in America, RB Leipzig in Germany, RB Salzburg in Austria, and a club in Brazil. So, they can market their own product while their teams play football. Every game they play on TV gives Red Bull 90 minutes of free commercial.
Also, football clubs generate huge amounts of money, as we saw in the last years of RB Salzburg and RB Leipzig. They sold such stars as Erling Braut Haaland, Takumi Minamino, and Joshua Kimmich in recent years.
Also, both clubs in Europe played a huge role in European competitions and got a lot of money from UEFA. In Brazil, Red Bull is building a network for finding talented players, and the club in the USA already grew 10 times in worth.
When the company both rights for an MLS franchise in New York, it was worth 25 million dollars, and now New York RB is worth an estimated 290 million!
Invest in football. It pays off.