Red Bull Salzburg and Red Bull Leipzig: two separate teams, one owner. The well-known energy-drink company Red Bull own 4 football clubs across the globe; Leipzig, Salzburg, New York and Brazil (per khelnow). However, no team had faced each other in a competitive competition until the season of 2017/18. Leipzig’s second place finish the season before granted automatic qualification for the Champions League group stages the following season, whilst Salzburg’s successful domestic campaign meant that they guaranteed a place in the final qualifying round (per NYTimes).
UEFA Regulations
Red Bull have had a somewhat ruthless approach in the commercialisation of their brand within football (per khelnow). However, their growth in football has led to a significant rise in success for the clubs they owned, particularly Leipzig and Salzburg. Leipzig in the space of 5 years have climbed the German divisions to be one of the best 3 clubs in Germany, whilst Salzburg continuously remain in contention for the Austrian domestic league title. The takeovers however have had their implications, with continuous anger within the football community as to how these clubs have soared, and also legally, with the potential breach in UEFA regulations within European competitions.
Article 5 of the Regulations of the UEFA Champions League meant that the participation of both RB Leipzig and RB Salzburg was technically prohibited, as Red Bull were the majority stake holder in both clubs. Article 5.01(a) outlines how the inclusion of both clubs perhaps infringed the integrity of the competition. The regulation states that no participating club of a UEFA competition may either directly or indirectly hold shares or securities in another competing club in a UEFA competition. Additionally, they can not be a member of any other participating club or be involved with the management or sporting performance of another club.
So the issue at hand for UEFA was how would they allow both clubs to compete, as they had both earned their participation in the Champions League due to their stellar domestic campaigns the season prior.
The Solution
It was settled that Red Bull and the two clubs had to make significant and substantial changes to ensure that no individual or legal entity had a greater and more decisive influence. The Adjudicatory Chamber of the UEFA Club Financial Control (CFCB) accepted both clubs participation, as the changed made did not breach the integrity of the competition (Art 5).
Key changes to the structure of both clubs ensured their participation in the competition. Prior to the legal issue, Red Bull officially owned both Leipzig and Salzburg. However, prior to the competitions commencement, Red Bull relinquished their ownership of Salzburg and became sponsors, however the club crest, stadium and all things associated to Red Bull still pretty much remained the same, whilst RB Leipzig remained owned by Red Bull (per Sky). As well as that, instead of both clubs being called RB Leipzig and RB Salzburg, Salzburg’s name was changed to FC Red Bull Salzburg as a further means to reduce any conflict of interests, whilst Leipzig’s name remained (per Wiki). RB Leipzig in fact stood for RasenBallSport Leipzig, which was accepted in Germany in the domestic league, however UEFA were much more strict and thus this alone would not constitute significant, acceptable changes (per Guardian).
The decision made by UEFA could have been appealed by any club that would have benefited from Leipzig’s absence. 3 German clubs: Hoffenheim, Cologne and Werder Bremen would have all benefited, however, it was confirmed no appeal would be made (per NYTtimes.)
In the end, the clubs have featured regularly in the Champions League and Europa League, with Leipzig reaching the semi final stage in the season of 2019/20, whilst Salzburg remain a constant underdog, beating European heavyweights such as Borussia Dortmund, Napoli and even RB Leipzig (per soccerway).
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