JP Morgan 'regrets' European Super League funding plan

Bank admits it misjudged the mood as proposals for the new soccer league collapsed due to backlash

Fans have won the first battle over the future of international club soccer in Europe.

JPMorgan has said it regrets supporting soccer clubs in launching a breakaway European Super League after the plan collapsed earlier this week amid intense criticism from fans and politicians.

"We clearly misjudged how this deal would be viewed by the wider football community and how it might impact them in the future," a representative for the bank said.

"We will learn from this."

JPMorgan provided a €3.5bn grant to the founding clubs to spend on infrastructure and recovery from the impact of the Covid-19 pandemic.

Plan collapsed under pressure

The plan collapsed on Wednesday — less than 48 hours from being announced — with eight of the 12 founding members from England, Italy and Spain walking away under massive pressure from fans, politicians, soccer officials, and even the British royal family.

The bank was the sole lender to the new soccer competition which was masterminded by Real Madrid's president Florentino Perez.

The financing package was key to helping Mr Perez win the trust of other major European clubs and draft a binding agreement that would commit an overall 12 clubs — including Juventus, Manchester United, Liverpool, Arsenal, Chelsea, Tottenham Hotspur, and Barcelona — to the new tournament, aimed at increasing revenues.

Calls for bank boycott

JPMorgan also faced criticism for its role in funding the rebel clubs as football fans immediately took to Twitter calling for a boycott of the Wall Street bank.

"We will avoid any businesses or financial products that JPMorgan have their grubby little paws in," an angry fan tweeted at the start of the week.

The bank also had its corporate sustainability rating downgraded by Standard Ethics over its role in financing the new soccer competition.

The reputational damage comes as JPMorgan's boss Jamie Dimon has repeatedly called for companies to consider the needs of workers, communities and customers as well as those of shareholders.

'Capitalism must be modified'

"Capitalism must be modified to do a better job of creating a healthier society, one that is more inclusive and creates more opportunity for more people," he said in an open letter to Time magazine in 2020.

Meanwhile, the creation of an independent regulator is on the agenda for a British government review of football.

The UK government released the terms of reference on Thursday which are focused on the "potential for changes to ownership models, governance, how finance flows through the game and how to give supporters a greater say in the running of the game".

The British government played a key role in pressurising the six English clubs to withdraw from the breakaway.

"Football begins and ends with fans and we have seen that passionately displayed this week. It must be a watershed moment in our national game," said UK sports minister Nigel Huddleston.

• Reuters