JP Morgan is the money behind European Super League

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JP Morgan is the money behind European Super League

Post by Scipio Africanus »

They want to create an NFL/NBA style league, with no relegation or promotion. Of course club owners love it!! Guaranteed revenue for ever.

https://finance.yahoo.com/news/european ... 06041.html


The announcement of a breakaway league at the top of European football has put one of the world's biggest banks in the spotlight.

JPMorgan Chase (JPM), the American financial Goliath, is behind the financing of the European Super League, the controversial new football competition made up of the continents most storied clubs. Funding for the new competition is said to total between $3.8bn (£2.7bn) and $5bn.

A spokesperson for the bank confirmed it was working on the deal but declined to give any details.

The transaction represents a coup for JPMorgan. It is likely to be the biggest sports financing deal of 2021 and should reap big fees. The Financial Times reported the bank will charge an interest rate of 2% to 3% on the debt.

Tim Bridge, a director at Deloitte, which produces an annual report on the finances of football, said the funding deal was “one of the biggest ever" and “a pretty seismic shift."

The business of sports has been a fast-growing market over the last few decades as TV distribution deals have soared into the billions. The growth of the market has attracted private equity investors, sovereign wealth funds, and bankers eager to lend money.

“It’s most noticeable in the last three or four years," Bridge told Yahoo Finance UK. "The interest we see from private equity firms and we see from banks in terms of looking at sport as an investment opportunity — there’s a lot of people who are banking on, and hoping for, the continued growth of sport in the coming years."

JPMorgan is America's biggest bank, with assets of over $3trn on its balance sheet. Its sprawling business covers everything from retail banking — under its Chase brand — to investment banking and corporate lending.

JPMorgan's sports finance team was created in the late 1990s and grew out of work its private bank was doing with wealthy team owners. Today, the team still sits within JPMorgan's private bank — a division tailored to meet the needs of the extremely wealthy.

One of the biggest clients is Stan Kroenke, the billionaire owner of Arsenal FC, the Los Angeles Rams, and the Denver Nuggets. JPMorgan lent Kroenke $2bn to finance the Rams' Inglewood stadium project, according to a recent profile of JPMorgan's Brian Kantarian in the New York Business Journal.

"Given the capital-intensive nature of sports ownership, it is imperative to understand the financial interplay between the team and individual owner," Kantarian, a member of JPMorgan's sports finance group, is quoted on the bank's website as saying.

The bank promises to help "sports teams and owners... secure the customized financing you need for team acquisition, stadium or arena construction, working capital or any other liquidity need."

JPMorgan's long track record in the sports finance market makes it an attractive partner for the European Super League. So too does the fact that the bank is American.

Unlikely the tiered league system traditionally favoured by European sports — where teams are relegated and promoted each season — the new Super League will have permanent members who cannot be removed from the competition.

The structure is much closer to American sports, where the teams that make up Major League Baseball, the National Basketball Association, and the National Football League are all fixed. JPMorgan will be intimately familiar with this sort of set-up, having worked extensively with American leagues and teams.

Bridge said this structure appealed to club owners because of the certainty over revenues and "investment security."

"If you’re own the owners of Liverpool this season and you don’t qualify for the Champions League, then you take a significant hit on your revenue for the next season whereas playing in this competition will likely give them the security that they crave in order to maintain the value of their investment," he said.

Shares in Manchester United (MANU) and Juventus (JUVE.MI) — two of the Super League's founding members — surged on Monday after the news broke.

"Given the capital-intensive nature of sports ownership, it is imperative to understand the financial interplay between the team and individual owner," Kantarian, a member of JPMorgan's sports finance group, is quoted on the bank's website as saying.

The bank promises to help "sports teams and owners... secure the customized financing you need for team acquisition, stadium or arena construction, working capital or any other liquidity need."

JPMorgan's long track record in the sports finance market makes it an attractive partner for the European Super League. So too does the fact that the bank is American.

Unlikely the tiered league system traditionally favoured by European sports — where teams are relegated and promoted each season — the new Super League will have permanent members who cannot be removed from the competition.

The structure is much closer to American sports, where the teams that make up Major League Baseball, the National Basketball Association, and the National Football League are all fixed. JPMorgan will be intimately familiar with this sort of set-up, having worked extensively with American leagues and teams.

Bridge said this structure appealed to club owners because of the certainty over revenues and "investment security."

"If you’re own the owners of Liverpool this season and you don’t qualify for the Champions League, then you take a significant hit on your revenue for the next season whereas playing in this competition will likely give them the security that they crave in order to maintain the value of their investment," he said.


Shares in Manchester United (MANU) and Juventus (JUVE.MI) — two of the Super League's founding members — surged on Monday after the news broke.

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Re: JP Morgan is the money behind European Super League

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These Europeans have no idea whats about to hit them....Looking forward to watching ESL games at Giants Stadium abeg.
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Re: JP Morgan is the money behind European Super League

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nanijoe wrote:These Europeans have no idea whats about to hit them....Looking forward to watching ESL games at Giants Stadium abeg.
:rotf: :rotf: Me too! Bring on the $8 hot dogs and $15 beer.

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Re: JP Morgan is the money behind European Super League

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:rotf: :rotf:
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Re: JP Morgan is the money behind European Super League

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Where’s Kabalega? Americanisation.
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Re: JP Morgan is the money behind European Super League

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Coach wrote:Where’s Kabalega? Americanisation.
Stop vexing. This is a win win situation. Yall will soon get the superbowl of football oops soccer :rotf: or world series. Lmao
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Re: JP Morgan is the money behind European Super League

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RIP Football if this happens...
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Re: JP Morgan is the money behind European Super League

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And very soon there will be salary cap
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Re: JP Morgan is the money behind European Super League

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I once wrote on here over 5 years ago that Europe should be worried about American involvement in soccer. I think if was days of Sepp Blatter arrests and I jokingly said soon football will be split into quarters not halfs for more adverts :rotf:
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Re: JP Morgan is the money behind European Super League

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nanijoe wrote:These Europeans have no idea whats about to hit them....Looking forward to watching ESL games at Giants Stadium abeg.
:lol: :lol: :lol: These Americans have no idea what hit them. According to Chelsea fans "stick your f@cking money up your arse"!
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Re: JP Morgan is the money behind European Super League

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cic old boy wrote:
nanijoe wrote:These Europeans have no idea whats about to hit them....Looking forward to watching ESL games at Giants Stadium abeg.
:lol: :lol: :lol: These Americans have no idea what hit them. According to Chelsea fans "stick your f@cking money up your arse"!
The American money men are too accustomed to leading government (the US variety) around by the nose. Dem don hear wien from real football fans. :clap: :clap: :clap:

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Re: JP Morgan is the money behind European Super League

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The first flaw in all this was the total lack of consultation with all levels of football and owners thinking they could bulldoze it through.
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Re: JP Morgan is the money behind European Super League

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Ipe Grams wrote:The first flaw in all this was the total lack of consultation with all levels of football and owners thinking they could bulldoze it through.
2nd flaw, to pull this thing off, you need buy in from real football people not boardroom suits. Any football person would tell you that a closed shop won't fly.
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Re: JP Morgan is the money behind European Super League

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The ESL is 100% going to happen..this was just an opening salvo. The supposed "real fans" are just pawns in a game between UEFA and the ESL people. These people are a lot savvier than UEFA ..UEFA's best bet is to try and negotiate, because as long as the Champions League is making money (and increasingly so), these guys are not going to rest until they wrest it from UEFA's hands.
cic old boy wrote:
nanijoe wrote:These Europeans have no idea whats about to hit them....Looking forward to watching ESL games at Giants Stadium abeg.
:lol: :lol: :lol: These Americans have no idea what hit them. According to Chelsea fans "stick your f@cking money up your arse"!
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nanijoe wrote:The ESL is 100% going to happen..this was just an opening salvo. The supposed "real fans" are just pawns in a game between UEFA and the ESL people. These people are a lot savvier than UEFA ..UEFA's best bet is to try and negotiate, because as long as the Champions League is making money (and increasingly so), these guys are not going to rest until they wrest it from UEFA's hands.




Chief, some of them said it, that they have just set their plans back by 5yrs.

Because yes they had legitimate concerns, but they have gone about them in the absolute worst way possible and they then capitulated at the first sign of trouble :rotf:

Basically they are laughing stocks right now and appear like paper tigers of the highest order. They will have to lie low for now publicly and then adopt other methods, maybe calling back debt on big EPL clubs and squeezing them into submission
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nanijoe wrote:The ESL is 100% going to happen..this was just an opening salvo. The supposed "real fans" are just pawns in a game between UEFA and the ESL people. These people are a lot savvier than UEFA ..UEFA's best bet is to try and negotiate, because as long as the Champions League is making money (and increasingly so), these guys are not going to rest until they wrest it from UEFA's hands.
cic old boy wrote:
nanijoe wrote:These Europeans have no idea whats about to hit them....Looking forward to watching ESL games at Giants Stadium abeg.
:lol: :lol: :lol: These Americans have no idea what hit them. According to Chelsea fans "stick your f@cking money up your arse"!
You still standing by yer statement hyping their business and marketing savvy?
:rotf: :rotf: :rotf:
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cic old boy wrote:
Ipe Grams wrote:The first flaw in all this was the total lack of consultation with all levels of football and owners thinking they could bulldoze it through.
2nd flaw, to pull this thing off, you need buy in from real football people not boardroom suits. Any football person would tell you that a closed shop won't fly.
Too many flaws, like thinking they didn't need the other clubs and could permanently exclude them from the ESL and continue playing with them in their respective domestic leagues.
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nanijoe wrote:The ESL is 100% going to happen..this was just an opening salvo. The supposed "real fans" are just pawns in a game between UEFA and the ESL people. These people are a lot savvier than UEFA ..UEFA's best bet is to try and negotiate, because as long as the Champions League is making money (and increasingly so), these guys are not going to rest until they wrest it from UEFA's hands.
cic old boy wrote:
nanijoe wrote:These Europeans have no idea whats about to hit them....Looking forward to watching ESL games at Giants Stadium abeg.
:lol: :lol: :lol: These Americans have no idea what hit them. According to Chelsea fans "stick your f@cking money up your arse"!
Can only happen if the fans and the majority of other clubs in respective local leagues and clubs in at least 5 Countries agree to it. These big 6 are getting the lion share of TV revenue that they unwilling to share and yet they still want more and think other clubs will agree?
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Re: JP Morgan is the money behind European Super League

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nanijoe wrote:The ESL is 100% going to happen..this was just an opening salvo. The supposed "real fans" are just pawns in a game between UEFA and the ESL people. These people are a lot savvier than UEFA ..UEFA's best bet is to try and negotiate, because as long as the Champions League is making money (and increasingly so), these guys are not going to rest until they wrest it from UEFA's hands.
You continue to misread the situation. This is dead in the water and in a worse situation than b/4 they announced it. Firstly, the financial backers now know how toxic it is. Rats are the first to leave a sinking ship. Why do you think only Perez came out to defend this? No sponsor wants to associate themselves with virulent negativity. It affects the bottomline. Nothing in my experience has united the entire political spectrum, players, coaches, fans, Fifa, Uefa, FAs, etc. The only people that think it is a good idea are some TV watchers in far-flung places. You can't sustain a business model with just those people, who are as fickle as they come.
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cic old boy wrote:
nanijoe wrote:The ESL is 100% going to happen..this was just an opening salvo. The supposed "real fans" are just pawns in a game between UEFA and the ESL people. These people are a lot savvier than UEFA ..UEFA's best bet is to try and negotiate, because as long as the Champions League is making money (and increasingly so), these guys are not going to rest until they wrest it from UEFA's hands.
You continue to misread the situation. This is dead in the water and in a worse situation than b/4 they announced it. Firstly, the financial backers now know how toxic it is. Rats are the first to leave a sinking ship. Why do you think only Perez came out to defend this? No sponsor wants to associate themselves with virulent negativity. It affects the bottomline. Nothing in my experience has united the entire political spectrum, players, coaches, fans, Fifa, Uefa, FAs, etc. The only people that think it is a good idea are some TV watchers in far-flung places. You can't sustain a business model with just those people, who are as fickle as they come.
Agree, a lot of big money sponsors will want no part of it when with even the fans of the 6 clubs don't want it and their clubs in it. Also notice how young those protesting were an age group they were after
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x
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Re: JP Morgan is the money behind European Super League

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The date on the tombstone :lol:

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