The Strategist

JPMorgan says it regrets decision to sponsor European Super League


04/26/2021 - 03:58



JPMorgan has expressed regret over its intention to finance the European Football Super League. The bank admitted it had misjudged the football community's reaction to the deal and its implications.



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U.S. bank JPMorgan said it regrets its decision to support Europe's top football clubs in creating the Super League, Reuters reports. A spokesman for the bank said the organisation had "misjudged how this deal would be perceived by the wider football community and how it could affect it in the future". JPMorgan will draw lessons for itself from this situation, the spokesman added.

JPMorgan had intended to give the participants of the new tournament €3.5 billion for infrastructure costs and reconstruction after the pandemic. Fans, who were mostly negative about the Super League idea, were also unhappy about JPMorgan's involvement, affecting the bank's reputation. Rating agency Standard Ethics downgraded JPMorgan's corporate strength rating because of its Super League funding.

The 12 clubs announced the creation of the Super League on the night of April 19. They announced a new tournament that would have had 15 permanent participants, including the 12 founding clubs, and only five replacements. The teams planned to forgo the main club tournament, the Champions League, which is run by the Union of European Football Associations (UEFA). The Super League's founding clubs are unhappy with the distribution of revenue from the tournament. JPMorgan was its only known creditor. Reuters writes that it was the Super League's financial backing that was the key argument for most of the tournament's founders.

source: reuters.com