Companies owning sports teams has become a prominent trend where businesses can combine their love for athletics and corporate interests. From football to basketball and even Formula 1 teams, these investments act as strategic moves to boost brand visibility, generate extra income, and create a solid presence in the sports industry.
By owning sports teams, companies use the power of sports marketing to create a win-win situation. This article will cover some renowned business companies that own sports teams.
Red Bull
Red Bull is a popular energy drink brand owned by an Austrian company. As of 2020, the company had a 43% market share and is one of the top soft drink companies in the world. Red Bull is known to incorporate some sports in its marketing. However, the company owns several sports teams, including football clubs like RB Leipzig and Red Bull New York, competing in Major League Soccer (MLS).
RB Leipzig is a German football club founded in 2009. The team has participated in the Bundesliga and currently holds position 34 in the UEFA Champions League. You can conveniently catch all the Champions League action from your betway app to ensure you don’t miss any matches.
The company also owns two Formula 1 teams: Red Bull Racing and RB Formula One Team. Recently, Red Bull acquired RB Omiya Ardija, a Japanese football team, making it the first foreign company to own 100% shares of a Japanese sports team.
Fenway Sports Group
Fenway Sports Group (FSG) is a good example of a business that is using sports ownership to build a global brand. The company owns five different teams:
- Boston Red Sox, an iconic team in Major League Baseball
- Liverpool FC, one of the biggest football teams in England
- Pittsburgh Penguins, which is an ice hockey team
- RFK Racing competing in the NASCAR Cup Series
- Boston Common Golf
One of their most expensive purchases was the Pittsburgh Penguins, which FSG acquired in 2021 for $900 million. However, despite the Penguins winning multiple NHL championships, they have experienced a downward trajectory since 2021.
Kroenke Sports & Entertainment (KSE)
This American company was founded in 1999. In the last two decades, Kroenke has acquired Emirates Stadium and Arsenal Holdings, which owns Arsenal Football Club and Arsenal Women’s Football Club.
Generally, KSE has a diverse portfolio across different sports and teams. Apart from having a prominent team in the English Premier League under their wing, they also own the Los Angeles Rams, a very successful NFL franchise. Other teams under KSE include:
- Denver Nuggets in the NBA
- Colorado Rapids who are in the National Lacrosse League
- Colorado Rapids in the MLS
- Colorado Avalanche in the NHL
KSE has also diversified into esports, which is becoming very popular in the sports betting world on sites like Betway. The company owns the Los Angeles Gladiators, a part of the Overwatch League, and Los Angeles Guerilla, which won one major in the Call of Duty League.
Conclusion
Sports teams owned by business companies show the link between sports and business strategy. As this trend continues, the future of sports marketing will change as the link between businesses and sports culture continues to solidify.
What are your thoughts on large corporations owning multiple sports teams? Is it good for the world of sports? For branding of other products? How do you think this relates to the gaming and Esports world? Let us know in the comment section below.
