What does the Paris FC takeover mean for the French capital, PSG, LVMH, and Red Bull?

The French football landscape is witnessing a seismic shift as the Arnault family and Red Bull are set to join forces to acquire a majority stake in Paris FC, currently a top contender in Ligue 2 and the women’s D1 Arkema.

This strategic move sees the Arnault family, owner of LVMH, taking a 55% majority share, while Red Bull holds 15%, with current president Pierre Ferracci retaining 30% until 2027.

What could be some implications of the awaited takeover?

The end of PSG's monopoly on the 'Paris brand'

When PSG's new ownership took over in 2011, their goal was to transform the club into a global brand—one that could compete not only with football giants like Real Madrid and Manchester United but also with iconic sports franchises such as the New York Yankees and Chicago Bulls.

To achieve this ambitious vision, PSG leveraged its most valuable inherent asset: Paris itself.

In 2013, the club redesigned its logo, enlarging the 'Paris' while reducing the 'Saint-Germain' font. The Eiffel Tower, Paris's most recognizable monument, remained the logo's centerpiece.

By aligning itself closely with Paris's reputation for fashion and art, and through creative partnerships—most notably the Jordan brand—PSG evolved into the sports world's leading lifestyle brand.

Today, it boasts more international retail outlets than any other sports team, with official stores in global hubs like Tokyo, Seoul, New York, Las Vegas, and London.

Over a decade after PSG's transformation began, another Paris football team is poised for a takeover by a deep-pocketed owner.

Intriguingly, this new owner is the parent company of iconic French maisons (Louis Vuitton, Givenchy, Dior, Celine)—the very brands that helped cement Paris's status as the global capital of fashion and luxury.

It will be fascinating to see how these two clubs differentiate themselves as brands in the years to come, especially if Paris FC manages to compete for major trophies.

On the marketing and partnership front, Paris FC will be able to tap into LVMH's fashion expertise and extensive network

It's important to note that the Arnault family's holding company Agache, not LVMH itself, is reportedly acquiring a majority stake in Paris FC.

Nevertheless, partnerships between some of LVMH's brands and the club are likely, mirroring how PSG's biggest sponsors include Qatari companies closely tied to its ownership.

Interestingly, LVMH-owned Dior currently sponsors PSG. The Arnault family and PSG's Qatari owners are reportedly on good terms, with the Arnault sons occasionally attending matches at the Parc des Princes. How these relationships will evolve remains to be seen.

LVMH brands could undoubtedly help position Paris FC as another fashionable football brand. Next to PSG, this branding approach has already been embraced by several Italian clubs—another fashion hotspot.

Teams like Como 1907 and Venezia FC have leveraged Italy's reputation for tourism and fashion to boost commercial revenues and ultimately improve their sporting success, gaining promotion to Serie A. Even bigger clubs like AC and Inter Milan are positioning themselves as fashionable lifestyle brands.

Sponsoring Paris FC would be LVMH's latest foray into the sports world, but not its first.

The corporation was a high-profile sponsor of this summer's Paris Olympics and recently announced a 10-year deal with Formula One, activating multiple brands across both properties.

Its flagship company, Louis Vuitton has also struck deals with top athletes like Lionel Messi, Carlos Alcaraz, and Léon Marchand. Furthermore, the brand provided trophy cases for tournaments including Roland Garros (2017, 2018), the FIFA World Cup (since 2010), and the NBA Finals (2020-2022).

In terms of football operations, Paris FC will be able to tap into Red Bull's extensive expertise and network in the sport

With no expertise in the sports industry, the Arnault family decided to team up with Red Bull.

The Austrian group recently named former Liverpool manager Jürgen Klopp as its new Head of Football. It also took a minority stake in English second-tier football club Leeds United in May, adding to a portfolio of teams in the US, Brazil, Austria, and Germany.

The French capital is football’s hottest talent factory, and Red Bull knows it.

30 players at the 2022 World Cup were born in Greater Paris - more than produced by London and Sao Paulo combined.

Although set to acquire a minority stake in Paris FC, Red Bull will certainly try to capitalize on the presence of local talents, not only for the club but also for its network.

The resurgence of Paris as a major hub for professional sports

Around 1900, Paris became the birthplace of several major sports organizations: FIFA, the FIA, the Tour de France, and the modern Olympics. The city hosted the Summer Games in 1900 and 1924.

In the 1950s, Parisian journalists created two influential football institutions: the European Cup (the predecessor of the Champions League) and the Ballon d'Or—widely considered football's most prestigious individual award.

However, by the 21st century, Paris's status as an international sports hub had diminished. As football clubs evolved into global brands, cities like Madrid, Milan, and especially London gained prominence on the international sports scene, thanks to their multiple top-tier teams.

This power shift may now be slightly reversed. Paris successfully hosted the 2024 Olympic Games, demonstrating its organizational prowess. The French Open continues to be a cornerstone event in tennis, while PSG is now a powerhouse of European football. Paris Basketball, founded in 2018, made its Euroleague debut this season.

FC Versailles, another Greater Paris club, is following the footsteps of teams like Venezia FC and Wrexham AFC, focusing on branding and content production to position itself as an entertainment brand. It boasts F1 driver Pierre Gasly among its owners.

The emergence of Paris FC as another major player in the Parisian sports landscape aligns with the recent resurgence trend of top-level professional sports in the City of Light.

For further insights on Paris and the sports industry, I recommend Chapters 15 and 21 of 'Impossible City - Paris in the Twenty-First Century' by Simon Kuper.

Parc des Princes vs Jean Bouin

Paris FC is in talks to relocate to Jean Bouin Stadium next season, a 20,000-seat venue in the 16th arrondissement. Notably, this stadium is situated a mere 50 meters from… the Parc des Princes.

PSG has long been attempting to purchase the Parc des Princes from the City of Paris. However, the mayor has consistently refused, citing the stadium's status as public heritage belonging to Parisians.

Consequently, PSG is considering options to construct a new, larger stadium in Greater Paris.

Interestingly, Paris FC previously called the Parc des Princes home from 1972 to 1974, before PSG took residence.

Should PSG depart from the Parc des Princes—a move likely to spark protests from die-hard fans—it could pave the way for Paris FC's return to the 48,000-seat venue.

According to reports, no sudden billion-dollar inflows are expected in Paris FC, as the focus remains on long-term growth and talent development.

Nevertheless, the announced deal is good news for French football, still reeling from the recent broadcasting rights debacle.

It will be interesting to see how the wealthiest French family—which successfully developed global brands in the fashion and luxury goods industry—will manage the development of a Paris-based football brand.

In particular, the upcoming on and off-the-pitch rivalry with PSG will be closely followed.

On a European level, Paris FC’s rise could challenge traditional football powerhouses by the next decade, adding another team to watch.