JP Morgan Chase, a US investment bank, announced on Monday that it is funding the new season of the breakout league, the European Super League in a €4 billion ($4.8 billion) bet.
The investment bank giant intends to fund the top-tier super league with an initial €3.5 million investment, a figure that will total €4 billion after additional payments and expenses.
JP Morgan’s links to sport deals goes all the way back to 2003 when it advised the American Glazer family on its purchase of the English Premiership side, Manchester United FC. It went on to work on the club’s initial public offering almost a decade later. Coincidentally, Ed Woodward, the vice-chairman of Manchester United, one of Europe’s top clubs to have signed up to the league, is a former JPMorgan banker.
Manchester United shares has trended bullish with an increase of (+0.062%) since the announcement of the Super League.
Soccer officials, fan clubs, and lawmakers from all over Europe have slammed the breakaway. The proposals have been condemned by French President, Emmanuel Macron and UK Prime Minister, Boris Johnson, as well as the main European domestic leagues and football federations.
As a result of the breakout, UEFA has barred them from competing in all other domestic, European, or international competition, and their players could be refused the right to represent their countries.
The Super League shared apprehension about taking defensive measures to defend themselves from such a negative response, which would jeopardize not only the funding pledge under the JP Morgan financial grant, but also the Super League’s reputation. As a result, Super League Company has filed a motion with the appropriate courts to ensure that the Competition is established and operated in compliance with applicable laws.
Breakaway challenges in the Champions League, Europe’s top club competition, have in the past resulted in compromises between UEFA and the major clubs over the structure and income sharing. However, this is the first time the richest clubs have gone past challenges, unveiling clear proposals to create a competing rivalry and establishing a separate league that they own.
The Super League stated that they hoped to have 15 founding partners and a 20-team league with five additional clubs qualifying per season, and that they will begin playing as soon as possible. The 15 teams will now share €3.5 billion ($4.21 billion) to spend on infrastructure and rehabilitation from the COVID-19 pandemic by a private corporation that will own the league.