Leipzig Invest to “Strengthen Club”

It was announced on Sunday, by RB Leipzig’s CEO Oliver Mintzlaff, that Red Bull GmbH completed a debt equity swap of over 100 million Euros in order to strengthen the club’s future. The move comes as many teams have to tighten their belts due to the COVID-19 pandemic but Red Bull has been honest about how they are still dedicated to the team’s development as one of the top teams in Germany and Europe.

“Since RB Leipzig’s foundation, profits have been generated every year,” said Mintzlaff when discussing the the debt equity swap. “Now we want to make the club capable of acting with regard to our aims in the coming years and make the club stable.”

Almost all major clubs operate with substantial debt. In some ways, it is out of the norm to have a club that hasn’t garnered significant debt as part of the bloated transfer market. However, this admission means that Red Bull may be ready to step from the shadows of being a feeder club for the top tier sides and potentially take their place among them in the coming years.

The past decade has seen a major shift in Red Bull Global’s priorities. For much of the first five years, it was New York Red Bulls that grabbed most of the headlines, with major signings but little in the way of profit or on-field success. Around that time saw the energy drink company purchased a small lower division club and renamed it RB Leipzig, with the intent of pushing them up the German Football pyramid. They had previously tried something similar in Brazil with little success and Salzburg, for all of it’s success, still remained obscure.

Leipzig took little time in reaching the top flight of German football, the Bundesliga, and quickly became a top priority of Red Bull’s sporting efforts. Now, they stand to be annual entrants in the UEFA Champions League and hope to move several high profile players for large sums in the summer transfer market.

“We have not been gifted this money,” said Mintzlaff. “Nothing gets given to you on a plate. This is therefore, first and foremost, an entrepeneurial decision made by Red Bull.”

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