{"version":"1.0","provider_name":"MRKT Insights - Football Consultancy Services","provider_url":"https:\/\/mrktinsights.com","title":"Lessons from the Red Bull group - MRKT Insights - Football Consultancy Services","type":"rich","width":600,"height":338,"html":"<blockquote class=\"wp-embedded-content\" data-secret=\"WGfDcgMwVN\"><a href=\"https:\/\/mrktinsights.com\/index.php\/2021\/08\/10\/lessons-from-the-red-bull-group\/\">Lessons from the Red Bull group<\/a><\/blockquote><iframe sandbox=\"allow-scripts\" security=\"restricted\" src=\"https:\/\/mrktinsights.com\/index.php\/2021\/08\/10\/lessons-from-the-red-bull-group\/embed\/#?secret=WGfDcgMwVN\" width=\"600\" height=\"338\" title=\"&#8220;Lessons from the Red Bull group&#8221; &#8212; MRKT Insights - Football Consultancy Services\" data-secret=\"WGfDcgMwVN\" frameborder=\"0\" marginwidth=\"0\" marginheight=\"0\" scrolling=\"no\" class=\"wp-embedded-content\"><\/iframe><script type=\"text\/javascript\">\n\/* <![CDATA[ *\/\n\/**\n * WordPress inline HTML embed\n *\n * @since 4.4.0\n * @output wp-includes\/js\/wp-embed.js\n *\n * Single line comments should not be used since they will break\n * the script when inlined in get_post_embed_html(), specifically\n * when the comments are not stripped out due to SCRIPT_DEBUG\n * being turned on.\n *\/\n(function ( window, document ) {\n\t'use strict';\n\n\t\/* Abort for ancient browsers. *\/\n\tif ( ! document.querySelector || ! window.addEventListener || typeof URL === 'undefined' ) {\n\t\treturn;\n\t}\n\n\t\/** @namespace wp *\/\n\twindow.wp = window.wp || {};\n\n\t\/* Abort if script was already executed. *\/\n\tif ( !! window.wp.receiveEmbedMessage ) {\n\t\treturn;\n\t}\n\n\t\/**\n\t * Receive embed message.\n\t *\n\t * @param {MessageEvent} e\n\t *\/\n\twindow.wp.receiveEmbedMessage = function( e ) {\n\t\tvar data = e.data;\n\n\t\t\/* Verify shape of message. *\/\n\t\tif (\n\t\t\t! 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Learning the lessons from the Red Bull Football Network&nbsp; Multi-club ownership has emerged as one of the most interesting and promising business models in the football industry. In recent years, the ever growing commercialisation of the industry has attracted many investors. The approach changed from buying single-clubs to creating a multi-club model. The Red Bull company was one of the first to forecast, predict, and recognize the potential of the multi-club ownership trend.&nbsp; In this article we analyse the development of the Red Bull Football Group to provide lessons we can apply to future multi-club ownership structures. How the Red Bull football portfolio evolved Red Bull started their investment in the football industry with the acquisition of SV Austria Salzburg in 2005 and renamed the club to Red Bull Salzburg. From a strategic perspective it was a smart move to start the investment with an Austrian club due to the market knowledge Red Bull has as an Austrian company. Starting from Austria they developed their club network all over the world. Graph 1 Red Bull global football clubs portfolio As you can see in the map Red Bull owns clubs in four out of seven continents. However, the project Red Bull Ghana was dissolved in 2014, meaning that right now they actively manage clubs in North America, South America, and Europe. The acquisition of USK Anif is worth noting. This allowed the group to field a directly controlled partner club in the second highest division. They renamed the club as FC Liefering, and have been able to establish a team in Austria&#8217;s second division whilst also competing (and winning) in the UEFA youth league. This was a significant strategic step for Red Bull, as their talent development program includes an environment in which young talents can compete at the highest level possible against adults from an early age. The Red Bull Football Group is a multi-club network spread across different continents that gives them access to a huge and diverse football talent pool. The benefit of such a structure is that young talents are not torn out of their environment and can stay in their culture for as long as possible. It means for a young talent in any of the Red Bull clubs to develop in a modern infrastructure, train under cutting-edge scientific training methods, and learn the Red Bull playing philosophy from a young age, all without having to adjust to a new culture. Once the players are older and more mature the transition to another Red Bull Club in Europe is easier as they already know how the system works and can adjust faster to deliver high performance in the new environment. While analysing and evaluating possible locations for a multi-club ownership portfolio the factors \u2018commercial value\u2019, and \u2018respective migration laws\u2019 play an important role next to the before mentioned factor \u2018access to a huge and diverse talent pool\u2019. The location of a club itself can be a driver for commercial and brand value due to cluster theory factors with the use of synergies to other sports and industries. The example of New York Red Bull is interesting as the franchise cost Red Bull $ 25 mio. back in 2006 and is now estimated to be worth $290 mio according to forbes. Migration laws are important points to consider, especially when a multi-club network wants to transfer players within the system. The migration laws should allow the issuance of working permits to the respective nationalities. Strategic management of the multi-club ownership Strategic management to structure the group but also the role of each single club is a necessity to be successful. The value of a multi-club ownership is closely linked to strategic planning and using synergies between the clubs.&nbsp;&nbsp; To oversee and strategically plan the future of the group a global board needs to be implemented. The global board steers the multi-club ownership and sets strategies together with each club.The global board centralises duties like HR, finance, and marketing and ensures that potential synergies are used with the group and clubs. Furthermore, an information system that stores global and local knowledge helps clubs to exchange information.&nbsp; A competitive advantage can be reached if the global board consists of people that are experts in both business and football. To occupy the various management positions, a multi-club ownership group can look even outside the football industry for qualified people (e.g. people experienced in managing a multinational corporation). However, roles like head of football, technical director, or head of scouting should be performed by absolute football experts. It is interesting to note that Red Bull steers its group through the global soccer office. In 2012 Gerard Houllier took over the Red Bull group as head of global football. During his time he set the strategic foundations and developed the group as a whole. Ralf Rangnick took over the role in 2019 for one year, with the position currently unfilled. One lesson we can learn from Red Bull is to implement a global office with the previously mentioned roles right from the beginning of multi-club ownership. Red Bull only started to structure a centralised office seven years after purchasing the first clubs. The story and the recents success of the Red Bull Group shows that a global office is one of the drivers for competitive advantage over its competitors. Sporting directors of RB Salzburg and RB Leipzig Within the club the sporting director occupies one of the most important roles. The sporting director oversees the entire footballing side and is responsible for the strategic development of the club, the team, and the club\u2019s overall philosophy. The position is a leadership one, so it is critical that someone stays in it for the long term.&nbsp; Table 1 Sporting directors of RB Salzburg and RB Leipzig Club Sporting Director From Until Salzburg Oliver Kreuse 2006 2007 Thomas Linke 2007"}