A group of the world’s richest soccer clubs including Manchester United and Real Madrid said they will break away from the prestigious UEFA Champions League and form their own Super League. The marquee names — six from England, three from Italy and three from Spain have signed up so far — would play each other midweek. Alongside 15 permanent teams, another five will qualify to take part each year.
The clubs have signed a binding agreement to commit to remaining part of the Super League for a set number of years, according to people with knowledge of the agreement. The binding agreement was a key driver behind JPMorgan’s investment, the people added. The financing from JPMorgan has been set at an interest rate of between 2 per cent and 3 per cent, and set over a 23-year time frame, one of the people added.
A spokesperson for JPMorgan declined to comment. The European Super League did not respond in time for publication. The new league would be the biggest shakeup to European soccer since the formation of the Champions League in 1955. National leagues from England, Spain and Italy, the sport’s governing body in Europe, as well as FIFA, the global governing body and organiser of the World Cup, have all hit back at the move, threatening the clubs with legal action and ejection from their domestic leagues.
JPMorgan’s links to landmark deals in the sport stretch back almost 20 years. In 2003, it advised the American Glazer family on its purchase of Manchester United FC. It went on to work on the club’s initial public offering almost a decade later. Manchester United is one of those that has signed up as a founding member of the Super League and its vice chairman Ed Woodward is a former JPMorgan banker.
The U investment bank’s role is vital as it gives the Super League the financial cover to put billions of euros in guaranteed broadcast rights on the line so the clubs can attempt to earn greater revenues via the breakaway league.
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 ostracised by national leagues and many fans.
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