JP Morgan admitted that he “clearly misjudged” the reaction of football fans to the attempt by 12 of the world’s richest football clubs to form a failed European Super League (ESL).
The Wall Street bank had agreed to provide 3.25 billion euros in financing to the ESL, to be repaid over 23 years on the income from broadcasting rights.
But the new league, which reportedly shielded a wealthy club clique from the competition, was nearly dead within two days of its announcement after an angry backlash from fans, players and politicians.
JPMorgan issued a statement on Friday expressing regret over his involvement.
The Bank of Wall Street said: “We clearly misjudged how this deal would be viewed in the wider football community and how it might affect them in the future. We will learn from it.”
JPMorgan’s statement came only after the plans all but collapsed. The six English clubs that had planned to participate – Manchester United, Manchester City, Liverpool, Arsenal, Tottenham Hotspur and Chelsea – had all pulled out on Tuesday night.
A source told CNN that the deal was approved by an internal JPMorgan committee that is assessing potential reputational risks.
“There is always a great emotional component to [sports]”said the source.” When making a financial decision on a loan, you should try to put emotions aside. “
The committee failed to assess the level of fury the new league would generate among football fans who have become increasingly disillusioned with the billionaire owners of several of the top clubs.
JPMorgan’s reputation has taken a hit in the European Super League, with fans mocking the bank on social media.
The fallout could be a problem for JPMorgan as it continues with plans to launch a UK retail bank later this year.
Plans for a new competition for Europe’s elite football teams have sparked common condemnation from all sports and all sides of the political spectrum.
Heads of government, including Frenchman Emmanuel Macron and Italian Mario Draghi, have all denounced these plans. Boris Johnson called the ESL a “cartel”.
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Source: www.independent.co.uk
This notice was published: 2021-04-23 11:45:38
