French billionaire Arnault family, owners of luxury group LVMH The member of one of the richest dynasties on the planet is preparing to take majority ownership of small football club Paris FC but sees a turnaround in the sport as a long-term goal.
Antoine Arnault, LVMH CEO and son of chairman Bernard Arnault, told CNBC that investing in second-tier clubs is more about “emotion” than finances. The intention is to replicate the sporting success Red Bull achieved with its acquisitions of German football clubs Leipzig and Austrian Salzburg.
The Arnaults will partner with Red Bull on the Paris FC business, with the family’s holding company Agache taking an initial 52% stake, with the energy drinks juggernaut taking an 11% stake, according to the Associated Press.
Arnault said that compared to other clubs, his family identified more “interest and value creation than other clubs, not only in terms of the sport, but also in terms of the brand that is Paris FC.”
“There are exceptions to French football and Parisian football. It is probably the only big city in Europe that has just one big football club. And Paris FC already has the infrastructure in place, it already has a great team, it already has a beautiful history. They need financially stronger shareholders, Arnault said in an interview with CNBC’s Charlotte Reed.
Antoine Arnault speaks to the media during the Paris FC press conference at the Groupe ADP – Center d’enttrainement Paris FC in Orly, France, November 20, 2024.
Christy Sparrow | Getty Images Sports | getty images
Compared to the Qatar-owned powerhouse Paris Saint-Germain, which has dominated French domestic soccer for decades, recruiting world-class stars and participating in international competitions, Paris FC is an unknown club that last played in the first division in the 1970s.
Asked by CNBC whether he saw Paris FC as a potential challenger, Arnault said: “It would be very rude to compare ourselves to Paris Saint-Germany. Our first goal is to get to Ligue 1 and then move up. And our fans love us and we love them. , to build a beautiful club with good values that fans respect and want to come back to next game.”
“I think it’s very important not to feel pressured to succeed. It’s about making the right decisions and taking some of the pressure off the shoulders of players who are going through a lot of the traditional sports stress. It’s a positive, but sometimes it’s a negative for big players like this. “he said.
“We are not an investment fund. We are not asking them to win the Champions League in three, five or 10 years, to do the best they can and give everything on the pitch.”
The team is set to receive a further boost with the appointment of Jurgen Klopp, who recently led English club Liverpool to Premier League success, as Red Bull’s head of global football. Klopp is expected to play an advisory role alongside Arnos.
Wealthy families and corporations have long viewed high-profile sports teams as attractive acquisitions as so-called “trophy assets” or branding opportunities rather than making significant money at huge costs.
Hollywood actors Ryan Reynolds and Rob McElhenney have led a bit of a reverse strategy since 2020, taking over Wrexham AFC, a small, underperforming Welsh club then in the fifth tier of English football, and looking to restore their fortunes and grow them. They produced a successful documentary around the world about their efforts. Through the league.
However, the Arnault family’s takeover has sparked further comparisons with Red Bull’s takeover. Red Bull’s investment has lifted both Leipzig and Salzberg to the top tier in the country, giving them Red Bull-branded stadiums, but has sparked considerable anger from fans of rival clubs in the process.
Arnault told CNBC that if his family had wanted a “trophy asset,” they would have looked elsewhere.
“What we want to do is create a story of resilience, a story of hard work with beautiful value,” he said.
