JP Morgan has confirmed that he will fund the $ 6 billion (£ 4.3 billion) European Super League, announced on Sunday by 12 of Europe’s biggest football clubs.

It is understood that the US investment bank will guarantee money in the form of loans for the teams involved.

It comes as the founding clubs of the controversial league saw their stock prices soar on Monday. The share price of Italian football club Juventus rose 13%, while Manchester United shares in England rose 5%.

The Super League is expected to shore up the club’s finances, with founding clubs receiving € 3.5bn (around £ 3bn) upon joining to “support their infrastructure investment plans and offset the impact of the Covid pandemic ”.

Some speculative members have also seen their share prices rise, such as Germany’s Borussia Dortmund, whose shares rose 8% as the club confirmed they would not participate in the new league.

According to the Forex news website FXStreet, the rise in stock prices is a positive reaction from investors, as the Super League could provide financial security for clubs.

In contrast, French football club Olympique Lyon saw its shares drop 0.4% on Monday early in the session, which could be the start of a fierce battle for control of the game and its lucrative income.

The European Super League said in a statement: “AC Milan, Arsenal, Atletico Madrid, Chelsea, Barcelona, ​​Inter Milan, Juventus, Liverpool, Manchester City, Manchester United, Real Madrid and Tottenham Hotspur have all joined as founding clubs.

“Three more clubs are expected to join ahead of the inaugural season, which is expected to start as soon as possible.”

But the announcement was greeted with widespread backlash from football fans and authorities across the UK and Europe, with many accusing the Super League of being a ‘money and greed’ issue. .

Prime Minister Boris Johnson joined the chorus of voices criticizing the new tournament, which he said was “not good news for the fans”.

He has promised to work with the football authorities “to make sure this does not go as it is currently proposed”.

Culture Secretary Oliver Dowden is due to make a statement in Commons on the plans Monday afternoon.

Additional Reuters Reports

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Source: www.independent.co.uk
This notice was published: 2021-04-19 14:03:35