Elite football teams unveiled the European Super League project

Elite football teams unveiled the European Super League project

JP Morgan-backed European Super League pushes club shares higher

Renowned European clubs took the world by surprise when announcing their plan to create the Super League, putting in the spotlight not only the teams but also one of the world’s largest banks, JP Morgan.

JP Morgan has confirmed that it will finance the new league with $6 billion, continuing its involvement in this field. In 2019, alongside other investors, it funded Real Madrid and multiple English clubs and the Everton stadium at Bramley-Moore Dock.

According to the European Super League statement: “AC Milan, Arsenal, Atletico Madrid, Chelsea, Barcelona, Inter Milan, Juventus, Liverpool, Manchester City, Manchester United, Real Madrid and Tottenham Hotspur have all joined as founding clubs,” and that “it is anticipated that a further three clubs will join ahead of the inaugural season, which is intended to commence as soon as practicable.”

The announcement attracted criticism from football authorities, fans, and politicians. They consider the move to be driven only by financial reasons, undermining the sport’s integrity by creating a league meant only for elite clubs, leaving aside the current competitions that allow teams to qualify based on performance. UEFA and FIFA were quick to respond, stating that the member clubs and players could be banned from all competitions and the World Cup. Prime minister Boris Johnson and French president Emmanuel Macron joined the criticism, hinting that the Super League was “not good news for fans.”

Despite people’s reaction, shares of Manchester United and Juventus surged on Monday. After opening on the New York Stock Exchange, the former’s stock price went up 9%, while the latter’s rose almost 19%.

Sources: ft.com, independent.co.uk, reuters.com

This information prepared by za.capex.com is not an offer or a solicitation for the purpose of purchase or sale of any financial products referred to herein or to enter into any legal relations, nor an advice or a recommendation with respect to such financial products.

This information is prepared for general circulation. It does not regard to the specific investment objectives, financial situation or the particular needs of any recipient.

You should independently evaluate each financial product and consider the suitability of such a financial product, by taking into account your specific investment objectives, financial situation or particular needs, and by consulting an independent financial adviser as needed, before dealing in any financial products mentioned in this document.

This information may not be published, circulated, reproduced or distributed in whole or in part to any other person without the Company’s prior written consent. Past performance is not always indicative of likely or future performance. Any views or opinions presented are solely those of the author and do not necessarily represent those of za.capex.com

JME Financial Services (Pty) Ltd trading as ZA.CAPEX.COM acts as intermediary between the investor and Magnasale Trading Ltd, the counterparty to the contract for difference purchased by the Investor via ZA.CAPEX.COM, authorised & regulated by the Cyprus Securities and Exchange Commission with license number 264/15. Magnasale Trading Ltd is the principal to the CFD purchased by investors.