How JPMorgan Chase got European football so wrong
April 21, 2021. Summarized by summa-bot.
Compression ratio: 56%. 2 min read.
LONDON, ENGLAND - APRIL 20: Chelsea fans protest against the newly proposed European Super League prior to the Premier League match between Chelsea and Brighton & Hove Albion at Stamford Bridge on April 20, 2021 in London, England. Sporting stadiums around the UK remain under strict restrictions due to the Coronavirus Pandemic as Government social distancing laws prohibit fans inside venues resulting in games being played behind closed doors. (Photo by Mike Hewitt/Getty Images)
When JPMorgan Chase agreed to finance a breakaway competition of some of the world's richest soccer clubs, it expected some heated discussions.
London (CNN Business)When JPMorgan Chase agreed to finance a breakaway competition of some of the world's richest soccer clubs, it expected some heated discussions.
But America's biggest bank didn't foresee this: Following massive blowback from fans, the sport's governing bodies, UK Prime Minister Boris Johnson, French President Emmanuel Macron and even the British royal family, efforts to form the European Super League have crumbled in a matter of days.
The 12 teams that tried to form the doomed league have been accused of seeking to orchestrate a massive cash grab by walling themselves off from competition, a goal that runs counter to the traditions of European football.
JPMorgan (JPM), which provided a €3. 5 billion ($4. 2 billion) loan to get the project started, is now being painted as a willing accomplice to billionaire club owners out to line their own pockets while undermining one of Europe's prized cultural assets with its roots in working-class communities.
One Twitter user sarcastically included a screen shot of Jamie Dimon's recent letter to shareholders, in which the CEO states that "businesses must earn the trust of their customers and communities by acting ethically and morally. " Others joked about the demise of the "JPMorgan Cup" and slammed America's efforts to "invade" the European sport.
But a source familiar with the discussions said JPMorgan's involvement was vetted by an internal committee that assesses potential deals for reputation or credit risks.
The source said discussions about forming a league had been underway for a number of years, though JPMorgan was not involved in any negotiations between clubs.
The bank had existing relationships with many of the teams involved.
The bank will not suffer a financial loss if the project doesn't go ahead.
The Guardian observed that it's a good thing JPMorgan has not yet launched its new digital UK bank.