The glamor of Arnault’s takeover comes at a much-needed time for French football, which is struggling with poor finances, an underwhelming media deal and constant infighting. 

“The prospect of being able to build and develop a brand like Paris FC, with the Paris name as part of the brand, also counts for a lot,” Arnault said at a press conference on Wednesday. “It’s an opportunity we will seize.”

Paris FC, founded in 1972, is currently the leader of France’s Ligue 2, one step below the top league. The Arnault family is investing through its holding company Agache and will own 52% of the club after the upcoming closing of the deal, a stake that will reach 80% in three years. Arnault said the investment would be significant, but declined to give a number. Newspaper l’Equipe reported a budget in a range between €100 million ($105 million) and €200 million over several years.

LVMH, the Paris-based luxury empire spanning from fashion to spirits, has made Bernard Arnault, the world’s fifth richest person in the world according to the Bloomberg Billionaires index. LVMH has been steadily deepening its investment linked to sporting events. It was a major sponsor of the Olympic and Paralympic Games held in Paris over the summer, and Louis Vuitton a sponsor of the sailing race America’s Cup.

The family is investing in Paris FC alongside Red Bull — a long-time investor in football clubs — which will hold a 11% stake after the closing of the deal, rising to 15%. The Arnault’s got to know the energy drinks company during negotiations over the recent 10-year sponsorship deal with Formula 1, worth potentially $1 billion. Red Bull owns two F1 teams. 

Arnault said he has already spoken to former Liverpool FC manager Jürgen Klopp, who is joining Red Bull in January as head of global soccer. 

The family’s plan is to make Paris FC profitable and “not to waste money”, said Arnault, who recognized football is a “difficult” business to be in.

PSG has long been the dominant club in the French capital. Qatar Sports Investments took over the team in 2011 and has spent over a billion euros bringing in some of the world’s best players. 

PSG aside, French football teams have struggled to compete against their European rivals from England and Spain. Clubs have complained about low revenue from TV rights, which have decreased over the years. A deal made by France’s football governing body with private equity firm CVC Capital Partners is also under scrutiny. 

Arnault said he was aware of the “crisis” and hoped for the best. “We hope we’ve reached the bottom of the cycle and that everything will move forward again,” he said.

Pierre Ferracci, the previous owner of Paris FC, said he picked the LVMH family over other proposals as it is a French investor.

“Two thirds of French League 1 and League 2 clubs are owned by foreign groups,” he noted.  

Arnault gave the press conference from the Paris FC’s training academy next to the Orly airport, south of Paris. The club is known to scout for emerging football talent in the wider Paris region. Developing the academy to build-up the team will be one of its main objectives, Arnault said. 

The billionaire clan may not be finished diversifying into sports. 

“Who knows”, Arnault said. “Athletes and clubs have become much more powerful, and brands in their own right.” 

Arnault, who also looks after image and communications at LVMH, said he would not ask the group’s brand to be sponsors of the club, but wouldn’t prevent them if they wish so.

Arnault said he has been a fan of football since he was a teenager, including of PSG, and would continue to support the team, except when it will face the Paris FC. 

“There is room for another club in Paris,” he said.