Paris's next big soccer success may be planned by one of the world's wealthiest families.
- Antoine Arnault, the son of LVMH CEO and Chairman Bernard Arnault, revealed to CNBC that the investment in the second-tier club was driven by "emotions" rather than financial considerations.
- Red Bull has appointed Jürgen Klopp, the coach who led Liverpool to the Premier League title, as their global head of soccer, in a bid to gain more momentum.
- Klopp is expected to work with the Arnaults in an advisory role.
The Arnault family, owners of luxury group LVMH and one of the wealthiest dynasties globally, is planning to acquire a majority stake in Paris FC, a minor soccer club, but views any sporting revival as a long-term objective.
Antoine Arnault, the son of LVMH CEO and Chairman Bernard Arnault, revealed to CNBC that the investment in the second-tier club was driven by "emotions" rather than financial gains; as it aims to replicate the sporting success Red Bull has achieved through its acquisitions of German soccer club Leipzig and Austria's Salzburg.
The Associated Press reports that the Arnaults will collaborate with Red Bull in the Paris FC project, with Agache, the family's holding company, taking an initial 52% stake, and Red Bull acquiring 11%.
Paris FC was identified as having more "interest and value creation than other clubs" by Arnault, not just in sports but also in branding.
According to Arnault, there is an anomaly in French football, specifically in Parisian football, where Paris FC is the only big city in Europe with only one big football club. Despite having infrastructure, a great team, and a beautiful history, Paris FC needs a financially stronger shareholder to push it to the next level.
While Paris Saint-Germain, owned by Qatar, has long been a dominant force in French soccer, attracting top-level talent and competing in international tournaments, Paris FC is a relatively unknown club that hasn't played in the top league since the 1970s.
Paris FC is not being viewed as a potential challenger by Arnault, who stated that it would be arrogant to compare his team to Paris Saint-German. The primary objective is to move up from League One and then expand, with the ultimate goal of building a club with strong values that are cherished by fans and respected in the community.
"It's crucial to have the freedom from time pressure to make the right decisions, especially for players who are under a lot of traditional sports stress, which can be both positive and negative, especially when there's a big shareholder involved," he stated.
"We are not an investment fund. We're not seeking to win the Champions League in three, five, or 10 years; instead, we simply want them to give their best and play with all their might on the field."
Jürgen Klopp, who led Liverpool to Premier League success, has been appointed as Red Bull's global head of soccer. He is expected to work with the Arnaults in an advisory role.
High-profile sports teams have long been attractive acquisitions for wealthy families and businesses, often viewed as a "trophy asset" or for branding opportunities rather than as a significant moneymaker due to the high costs involved.
Since 2020, Hollywood actors Ryan Reynolds and Rob McElhenney have taken a reverse approach by purchasing a struggling Welsh club, Wrexham AFC, which was in the fifth tier of English soccer, and documenting their efforts to revive its fortunes and climb the ranks.
The Arnault family's acquisition has been compared to Red Bull's investments, which helped both Leipzig and Salzberg rise to the top of their domestic leagues and receive Red Bull-branded arenas, despite causing controversy among fans of rival clubs.
If they wanted a "trophy asset," they would have searched elsewhere, according to Arnault's statement to CNBC.
He stated that our goal is to create a narrative of resilience, one that combines diligence with admirable values.
Business News
You might also like
- Paris's next big soccer success may be planned by one of the world's wealthiest families.
- "Gladiator II" team-up is projected to have a $200 million opening weekend, with "Wicked" bringing in $19 million in previews.
- Cincinnati soccer team ownership group bids with Caitlin Clark.
- The world's 431 female billionaires and their wealth management practices
- Luxury automaker defends controversial rebrand amid pivot to EVs.