Co-President Daniel Pinto of JPMorgan Chase & Co (NYSE: JPM) had one of the best seats for the European soccer Super League that collapsed within days. The investment bank financially supported the breakaway soccer project that later met with widespread condemnation from fans and clients.
Pinto said in his interview on 20th April:
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“We were expecting this to be emotional. I don’t think there is a reputational damage here. We arranged a loan for a client. It’s not our place to decide the optimal way for football to operate in Europe and the U.K.”
JPMorgan could have made millions if the Super League hadn’t collapsed
JPMorgan could have made millions in interest payments and fees if the Super League hadn’t been short-lived. As the founding teams pulled out one after the other, Pinto now has to strategise to manage the adverse impact on the bank. The co-president said:
“It is clear we misjudged the magnitude of feeling that this deal would create, and we will learn from this experience as a company. In the end, football fans were heard loud and clear, and that’s what matters most.”
JPMorgan shares opened at £105.93 in the stock market on Friday and closed the regular session at a higher £108.15 per share.
The investment bank is currently in the process of launching a retail lender (digital-only) in the United Kingdom – a move that debuts its consumer business outside of the United States. Former Goldman Sachs economist Jim O’Neill also commented on the Super League news and said:
“How on Earth did they let themselves let this proposal get to where it got? It is ridiculous and epitomizes everything that has gone wrong with modern sport, and in particular, football.”
JPMorgan apologies for bankrolling football super league
JPMorgan apologised for backing breakaway football super league on Friday. In his interview with Bloomberg, Pinto expressed confidence that the firm’s financial performance was likely to remain robust this year. He said:
“We see a very healthy wallet growth in investment banking this year, and in trading probably more normalized volumes in line with 2019 with some degree of growth. With an economy that is growing so well, you are going to have vibrant markets and good client engagement.”
JPMorgan reported market-beating results for the fiscal first quarter on 14th April. At the time of writing, it is valued at £328 billion and has a price to earnings ratio of 11.92.
