JP Morgan have pulled out of their £3.5billion backing of the
The Premier League ‘Big Six’ were the first to withdraw on Tuesday evening, just 48 hours after they formed half of the founding members of the new competition.
But protests from fans and pundits eventually saw Manchester City, Manchester United, Arsenal, Liverpool, Chelsea and Tottenham pull out.
JP Morgan have pulled out of their £3.5billion backing of the European Super League
Protests from fans and pundits saw the Premier League Big Six withdraw two days after it was founded
Atletico Madrid and clubs in Italy have since pulled out of the controversial breakaway too, though Real Madrid and Barcelona have failed to bow to pressure and remain part of the league.
But in a blow to the LaLiga duo’s hopes of staging the competition later this year, the American bank has now revealed is it withdrawing funding for the Super League.
In a statement, JP Morgan said: ‘We clearly misjudged how this deal would be viewed by the wider football community and how it might impact them in the future.’
‘We will learn from this.’
Manchester City were the first to officially withdraw before the other five teams joined them
JP Morgan’s bankers reportedly committed £2.8bn (€3.25bn) to the ESL plan, mainly for a payment of between €200m and €300m to each team.
The statement comes just a couple of days after sustainability ratings company Standard Ethics downgraded the investment bank’s credibility rating from ‘adequate’ to ‘non-compliant’.
‘Standard Ethics judges both the orientations shown by the football clubs involved in the project and those of the US bank to be contrary to sustainability best practices, which are defined by the agency according to UN, OECD and European Union guidelines, and take into account the interests of the stakeholders,’ a statement said.
The agency cited the ‘serious negative effects’ of the plan on the bank as the reasons behind the downgrade, and which were all highlighted further by UK Prime Minister Boris Johnson, his Italian counterpart Mario Draghi, and France’s President Emmanuel Macron.
JP Morgan suffered as a result too, with their rating dropping from ‘adequate’ to ‘non-compliant’
JP Morgan’s boss, Jamie Dimon, earlier this month added ‘reputation was everything’ to companies like his own and underscored the great importance of ‘community’.
‘To a good company, its reputation is everything,’ Dimon wrote. ‘That reputation is earned day in and day out with every interaction with customers and communities.
‘When I hear examples of people doing something that is wrong because they could be paid more, it makes my blood boil – and I don’t want them working here.’
Standard Ethics rates companies by evaluating their sustainability and is modelled on credit-ratings agencies, but the agency did not absolve the 12 clubs involved in their role in the creation of the Super League of any blame either.
The company charges a fee to some corporations to grade them based on their performance in environmental, social and governance matters, albeit JP Morgan’s rating was unsolicited.
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