Red Bull GmbH is contemplating a move into the world of NBA basketball by potentially bidding for a new team, Bloomberg reported. This prospective venture, currently centered on a potential franchise in Las Vegas, marks an early-stage internal deliberation for the energy drink giant, known for its growing investments in sports franchises and athletes.
The discussions indicate that price will play a main role in Red Bull’s decision-making process regarding any bid, people familiar with the matter said. Responding to queries about these deliberations, a spokesperson for Red Bull maintained the company’s standard policy of refraining from commenting on speculative plans.
If Red Bull proceeds with an NBA bid, it could be a landmark addition to its expansive sports portfolio, which already includes ownership of two Formula 1 teams, football clubs such as Major League Soccer’s New York Red Bulls and RB Leipzig, as well as recent stake acquisitions in English football team Leeds United and the Bora-Hansgrohe cycling team. An NBA team would likely be one of its biggest assets.
Financially, the potential acquisition poses challenges, given Red Bull’s aversion to taking on debt. However, the company’s financial performance, highlighted by over 12 billion cans sold in 2023 and net sales surpassing €10 billion ($10.9 billion), indicates its capacity for big investments. Each of the last three NBA teams sold was valued at $3 billion or more.
In the competitive landscape of NBA ownership, Red Bull would likely face a number of rivals, including high-profile individuals and investment groups. Notably, Samantha Holloway, daughter of a TPG Inc. co-founder, is assembling a consortium for a Seattle-based NBA team.
Red Bull’s interest could mark a departure from the traditional ownership model of NBA franchises, which are typically held by high-net-worth individuals or investment groups. Any bid from the energy drink company would necessitate approval from the NBA.
Red Bull is guided by Mark Mateschitz, who assumed leadership following his father’s passing two years ago. “Our growth plans for 2024 foresee a continuation of the positive developments so far, and — as usual for Red Bull — will be financed by operative cash flow,” the company said in January.