Opponents of the new, closed league called for a boycott of JP Morgan. The bank should finance the Super League.
(Photo: dpa)
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New York America’s largest bank JP Morgan Chase has apologized for its role as key financer of the failed Super League. “It is obvious that we have misjudged the level of emotion this deal would bring. As a company, we will learn from this experience, ”said top manager Daniel Pinto on Friday to financial services provider Bloomberg. “In the end, the football fans were heard loud and clear and that’s what matters most.”
JP Morgan really just wanted to be the financier in the background. “We arranged a loan for a customer. It is not our role to decide how best to organize football in Europe and the UK, ”Pinto said. He heads the corporate and investment bank and, along with Gordon Smith, is considered a possible candidate to succeed CEO Jamie Dimon.
The bank had come under criticism in the past few days for its role in the debacle over the “Super League”. The institute should have financed the planned new soccer league with four billion euros, which would have brought in fees and interest in the millions for the Wall Street house.
JP Morgan will be able to get over the failure of the project. The bank just announced profits of over $ 14 billion, the highest in a first quarter. But the timing is bad.
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The bank plans to launch a new online bank in Great Britain under its private customer brand Chase. It is the first time that this division wants to attract customers outside of the US. Goldman Sachs’ online subsidiary, which started successfully with Marcus in Great Britain in 2018, has already done a similar thing.
However, a Twitter storm hit JP Morgan earlier this week. Opponents of the new league called for a boycott of the bank. Customers and advisors of the bank also expressed their displeasure. Hedge fund manager Paul Marshall, who is also a customer of JP Morgan according to media reports, shared a critical post on Twitter from Brexit supporter Nigel Farage about the planned league.
Former British Prime Minister Tony Blair is an advisor to the bank, as is former Chancellor of the Exchequer Sajid Javid – both of whom spoke out against the Super League plans. The move seems “to be motivated exclusively by profits,” said Javid the “Daily Telegraph” and called even before the collapse of the plans after just 48 hours to punish the clubs with a “super tax”.
According to financial circles, JP Morgan’s decision to finance the Super League was waved through by a committee that assesses credit and reputational risks, among other things. Apparently the managers underestimated the emotional reactions of the football fans. A spokeswoman did not want to comment.
Florentino Perez is one of the bank’s clients
The money house has had close ties to the European football world for years. The private bank has a group of bankers that focuses exclusively on sports clubs and stadium financing and advises club owners on possible takeovers, among other things.
Several clubs are among the bank’s customers, including Real Madrid with President Florentino Perez, one of the major drivers of the Super League. JP Morgan has financed, among other things, the renovation of the Madrid stadium in the past.
Ed Woodward, co-chairman of Manchester United, was formerly an investment banker at JP Morgan when he advised the billionaire family around the late Malcom Glazer on the takeover of the club. He will now give up his post at the end of the year, as he announced on Tuesday.
More: JP Morgan and Goldman achieve record profits thanks to the Spac boom
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