Having inspired several Formula One world titles, Austrian energy drink company Red Bull are aiming to lift football club RB Leipzig all the way from Germany’s regional leagues to the Bundesliga.
Since the company founded RasenBallsport Leipzig and pumped in millions of euros in sponsorship, three promotions have followed in five years.
RB Leipzig are third in Bundesliga 2 and pushing for promotion, which would make them the first club from the former East Germany to play in the top division since Energie Cottbus was demoted in 2009.
Red Bull’s owner, Dietrich Mateschitz, wants the club to win the German title.
“A few years go by so quickly, but eventually it will happen,” the 70-year-old billionaire said when asked if winning the Bundesliga is realistic.
In the meantime, he wants Leipzig to reach the top tier to challenge the likes of recent German title-winners Bayern Munich and Borussia Dortmund.
“If we did not want that at some point, then we might as well hang up our boots,” he said. “To talk about promotions as a foregone conclusion would be absurd, but you need ambitious goals and it wouldn’t be a bad thing if we get in the first division as soon as possible.”
The squad contains several players with Bundesliga experience, including midfielder Rani Khedira, brother of Real Madrid’s World Cup winner Sami, and Germany international Marvin Compper.
The RB Leipzig story began just five years ago when Red Bull bought amateur club SSV Markranstadt, who were languishing in the fifth division, after first considering other clubs.
They changed the club's name and the fourth Red Bull football team came into existence, after New York Red Bulls, FC Red Bull Salzburg and Red Bull Brazil.
The name change bypassed the German football association rule prohibiting teams being named after a sponsor because the unusual RasenBallsport (grass ball sport) moniker allows the team to be known as RB Leipzig.
Big-money sponsorship of Bundesliga teams is nothing new. Hoffenheim are backed by software billionaire Dietmar Hopp; Wolfsburg have car manufacturers Volkswagen behind them; Bayer Leverkusen are sponsored by drug manufacturers Bayer.
RB Leipzig already have a World Cup-standard stadium. The 44,345-capacity Red Bull Arena, formerly known as Zentralstadion, hosted matches during the 2006 World Cup.
RB Leipzig’s budget of about €30 million (Dh136.6m), with a reported similar figure being invested in a training centre, means they are a force to be reckoned with in Germany’s second tier, where teams have an average budget of €15m to €20m.
Their rise has received mixed reactions in Germany.
A former East German club in the Bundesliga paints a romantic picture of a “Beacon of the East”, according to Leipzig’s managing director Ulrich Wolter.
But Red Bull’s considerable investment does not sit well with many of their rivals.
German clubs have a “50-plus-1” rule, which means every club’s supporters must have a controlling stake to prevent commercial interests from taking control. Wolfsburg and Leverkusen are exempt as they were founded as factory teams.
RB Leipzig’s management board was elected by club members, but it is heavily influenced by Red Bull, which has drawn criticism from German media.
A group of their second-division rivals, with Berlin’s FC Union the most vocal, have already protested by forming a “Nein zu RB” (No to RB) campaign.
Union’s 2-1 win against Leipzig in Berlin in September was marked by a 15-minute silent protest and with the majority of the home fans dressed in black. The match felt like a funeral.
Football magazine 11Freunde described Leipzig’s rise as a “resounding slap in the face to football’s culture” and they are not alone in that opinion.
“This development is bad for the overall economic performance of the Bundesliga,” Borussia Dortmund’s managing director Hans-Joachim Watzke told magazine Der Spiegel.
“People are afraid, nobody wants to mess with Red Bull.”
Leipzig’s rise strikes fans as the product of a “marketing machine”, sports marketing specialist Peter Rohlmann said. “I don’t think it’s a model, Red Bull is an exception,” he said. “But this is a very big risk: if the money disappears, so does the club.”
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The specs
Engine: Four electric motors, one at each wheel
Power: 579hp
Torque: 859Nm
Transmission: Single-speed automatic
Price: From Dh825,900
On sale: Now
Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
THE SPECS
Engine: 6.75-litre twin-turbocharged V12 petrol engine
Power: 420kW
Torque: 780Nm
Transmission: 8-speed automatic
Price: From Dh1,350,000
On sale: Available for preorder now
Volvo ES90 Specs
Engine: Electric single motor (96kW), twin motor (106kW) and twin motor performance (106kW)
Power: 333hp, 449hp, 680hp
Torque: 480Nm, 670Nm, 870Nm
On sale: Later in 2025 or early 2026, depending on region
Price: Exact regional pricing TBA
The National's picks
4.35pm: Tilal Al Khalediah
5.10pm: Continous
5.45pm: Raging Torrent
6.20pm: West Acre
7pm: Flood Zone
7.40pm: Straight No Chaser
8.15pm: Romantic Warrior
8.50pm: Calandogan
9.30pm: Forever Young
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In numbers: PKK’s money network in Europe
Germany: PKK collectors typically bring in $18 million in cash a year – amount has trebled since 2010
Revolutionary tax: Investigators say about $2 million a year raised from ‘tax collection’ around Marseille
Extortion: Gunman convicted in 2023 of demanding $10,000 from Kurdish businessman in Stockholm
Drug trade: PKK income claimed by Turkish anti-drugs force in 2024 to be as high as $500 million a year
Denmark: PKK one of two terrorist groups along with Iranian separatists ASMLA to raise “two-digit million amounts”
Contributions: Hundreds of euros expected from typical Kurdish families and thousands from business owners
TV channel: Kurdish Roj TV accounts frozen and went bankrupt after Denmark fined it more than $1 million over PKK links in 2013
'Worse than a prison sentence'
Marie Byrne, a counsellor who volunteers at the UAE government's mental health crisis helpline, said the ordeal the crew had been through would take time to overcome.
“It was worse than a prison sentence, where at least someone can deal with a set amount of time incarcerated," she said.
“They were living in perpetual mystery as to how their futures would pan out, and what that would be.
“Because of coronavirus, the world is very different now to the one they left, that will also have an impact.
“It will not fully register until they are on dry land. Some have not seen their young children grow up while others will have to rebuild relationships.
“It will be a challenge mentally, and to find other work to support their families as they have been out of circulation for so long. Hopefully they will get the care they need when they get home.”
Company profile
Name: Steppi
Founders: Joe Franklin and Milos Savic
Launched: February 2020
Size: 10,000 users by the end of July and a goal of 200,000 users by the end of the year
Employees: Five
Based: Jumeirah Lakes Towers, Dubai
Financing stage: Two seed rounds – the first sourced from angel investors and the founders' personal savings
Second round raised Dh720,000 from silent investors in June this year
Skewed figures
In the village of Mevagissey in southwest England the housing stock has doubled in the last century while the number of residents is half the historic high. The village's Neighbourhood Development Plan states that 26% of homes are holiday retreats. Prices are high, averaging around £300,000, £50,000 more than the Cornish average of £250,000. The local average wage is £15,458.
Formula Middle East Calendar (Formula Regional and Formula 4)
Round 1: January 17-19, Yas Marina Circuit – Abu Dhabi
Round 2: January 22-23, Yas Marina Circuit – Abu Dhabi
Round 3: February 7-9, Dubai Autodrome – Dubai
Round 4: February 14-16, Yas Marina Circuit – Abu Dhabi
Round 5: February 25-27, Jeddah Corniche Circuit – Saudi Arabia
Learn more about Qasr Al Hosn
In 2013, The National's History Project went beyond the walls to see what life was like living in Abu Dhabi's fabled fort:
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
THE SPECS
Engine: 1.5-litre
Transmission: 6-speed automatic
Power: 110 horsepower
Torque: 147Nm
Price: From Dh59,700
On sale: now
How to help
Call the hotline on 0502955999 or send "thenational" to the following numbers:
2289 - Dh10
2252 - Dh50
6025 - Dh20
6027 - Dh100
6026 - Dh200
At a glance
Global events: Much of the UK’s economic woes were blamed on “increased global uncertainty”, which can be interpreted as the economic impact of the Ukraine war and the uncertainty over Donald Trump’s tariffs.
Growth forecasts: Cut for 2025 from 2 per cent to 1 per cent. The OBR watchdog also estimated inflation will average 3.2 per cent this year
Welfare: Universal credit health element cut by 50 per cent and frozen for new claimants, building on cuts to the disability and incapacity bill set out earlier this month
Spending cuts: Overall day-to day-spending across government cut by £6.1bn in 2029-30
Tax evasion: Steps to crack down on tax evasion to raise “£6.5bn per year” for the public purse
Defence: New high-tech weaponry, upgrading HM Naval Base in Portsmouth
Housing: Housebuilding to reach its highest in 40 years, with planning reforms helping generate an extra £3.4bn for public finances
