JPMorgan Chase, showing a continued interest in the sports investment sector, has established a “sports investment banking coverage group.” The specialty will provide advisory and financing solutions for potential investors in athletic franchises, according to a Dan Ennis article on Banking Dive.
Fueled by Investor Demand, JPMorgan Chase Capitalizes on the Rise of Sports Franchises
An internal memo cited by Reuters has Fred Turpin, the JPMorgan global head of media and communications investment banking, stating, ” Sports has become an increasingly large asset class attracting more and more institutional investors.” The new sports investment banking team will be co-led by Eric Menell and Gian Piero Sammartano, who will report to Turpin and Burkhard Koep, respectively.
JPMorgan’s Sports Investment History
JPMorgan’s venture into sports investment is not new. The bank faced backlash in 2021 when it aimed to finance a breakaway European soccer league, with an underwriting of up to $4.8 billion. The proposed league collapsed shortly after the announcement, leading to the resignation of Manchester United’s then-executive vice chair, Ed Woodward, a former JPMorgan executive.
The soccer venture was seen as a potential avenue for JPMorgan to build name recognition in the U.K. as it prepared to launch a digital bank in the country. The bank’s involvement in the Super League led to criticism and a downgrade in its corporate sustainability score by UK-based Standard Ethics.
JPMorgan later apologized, stating, “We clearly misjudged how this deal would be viewed by the wider football community and how it might impact them in the future.”
JPM’s Recent Sports Financing Endeavors
Despite past controversies, JPMorgan continues to express interest in financing sports-related ventures. The bank has shown a desire to finance the development of a media business for Italy’s top-tier soccer league, Serie A, and has played a role in British billionaire Sir Jim Ratcliffe’s acquisition of a minority stake in Manchester United.
In addition, JPMorgan’s sports financing franchise has financed stadiums for teams in the U.S. and abroad, including the stadium for Real Madrid.
JPMorgan Positions Itself as a Leader in Booming Sports Investment Market
The creation of the sports investment banking coverage group underscores JPMorgan’s strategic focus on this kind of specialty investment. As the sports industry continues to attract institutional investors, JPMorgan’s expertise and resources in this sector position it as a key player in shaping the future of sports financing.
Read the full article by Dan Ennis at Banking Dive for more details on JPMorgan’s new sports investment banking coverage group.
