JP Morgan to finance the new European Super League with a $6bn injection

US investment bank JP Morgan has confirmed they will finance the new controversial European Super League with a $6bn cash injection.

The announcement of 12 major European clubs of their intention to join the new breakaway league has been met with a backlash from La Liga and UEFA.

However, the plans to bring forward talks with both FIFA and UEFA over the next stage of planning have received a boost following this latest announcement.

According to reports from Mundo Deportivo, the bank has agreed a joint investment collaboration with Key Capital, whose notable investors include prominent Spanish businessman Borja Prado.

Prado is a personal friend of Real Madrid – and now the European Super League president – Florentino Perez, with interests in major utility and media companies in Spain.

JP Morgan/Key Capital are rumoured to be offering each of the league’s founding members an initial assured €3.6m, however, previous estimates indicate the clubs are confident of securing a higher fee.

La Liga trio Real Madrid, Barcelona and Atletico Madrid are amongst the breakaway clubs alongside three from Serie A and six from the English Premier League.

How much money each club in the European Super League will earn per year

It looks like teams competing in the newly-announced European Super League will be able to earn around €330m annually from participation, according to New York Times.

That’s at least 3 times as much as a club can currently get from winning the Champions League – plus there’ll be a huge television contract to consider on top.

DAZN have been linked to get the TV rights to the Super League, worth a whopping €2.9Bn, while the whole league is being bankrolled by JP Morgan (pardon the pun), who’ll be backing the project with a €6bn figure.

However, DAZN and Amazon have denied the speculation:

For now it looks like Bayern Munich, PSG and Borussia Dortmund won’t be among those teams as all 3 pleaded loyalty to UEFA and condemned the idea. With no relegation and a €330m minimum guaranteed income, we wonder whether they’ll reconsider.

So let’s take a look at those clubs that could replace European giants in the Champions League and the Europa League next season.

While the new league would free the clubs from playing smaller teams that bring in lower income, it also opens them to the threat of being ostracized by national leagues and many fans.

Pulling up the drawbridge and awarding certain teams permanent membership move breaks with a founding principle of international football — that anyone can qualify — or fail to qualify — for the most prestigious competitions.

ESL could be a ‘gambit by big clubs to increase their Champions League income’

One media expert said the breakaway league could be a gambit by big clubs to increase their Champions League income.

“What the breakaway clubs really want is to take control of the Champions League,” said François Godard, a sports media analyst at Enders Analysis.

“It is a very aggressive attempt to get Uefa to sign up to a revamp of the Champions League that gives them more power and commercial returns. The two events can’t co-exist. If the Super League were to launch, the Champions League will just collapse.”

Popular

Football Manager 2022 CDKEY

FIFA 21 CDKEY

Twitter Follow

Related Posts

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.