JP Morgan Chase Launches Sports Investment Division

JP Morgan Chase, a leading global financial institution, has unveiled a dedicated sports investment banking unit to provide strategic advice and financial solutions for investments in sports franchises worldwide.

The establishment of the sports investment banking coverage group was disclosed through an internal memorandum, as reported by various media sources.

Eric Menell, Managing Director and Co-Head of North American Media Investment Banking, and Gian Piero Sammartano, Managing Director and Head of EMEA Media Investment Banking, have been appointed as the heads of this division.

Both report to Fred Turpin, the Global Head of Media and Communications Investment Banking.

In the memo, Turpin highlighted the growing prominence of sports as an asset class, attracting increasing interest from institutional investors.

This move comes in the wake of JP Morgan Chase's involvement in discussions concerning a proposed breakaway European Super League back in October 2020.

The firm reportedly considered providing $6 billion in funding for the league, with repayment anticipated from future broadcast rights revenues.

Recent revelations shed light on the project's financial intricacies. €3.5 billion was allocated to the 12 founding clubs to bolster their infrastructure investments.

Additionally, a proposed €10 billion in solidarity payments over 23 years was touted, surpassing those offered by UEFA competitions.

However, the initiative collapsed in April 2021 following withdrawals from all six English Premier League clubs involved, as well as Atlético de Madrid and Italian sides Inter Milan and AC Milan, leaving only Juventus, Barcelona, and Real Madrid expressing continued interest.

JP Morgan Chase has been actively engaged in various sports franchise transactions, such as acquiring a minority stake in Manchester United by Sir Jim Ratcliffe.

The bank has also played advisory roles in deals involving Formula 1 owner Liberty Media and World Wrestling Entertainment.

Notably, JP Morgan Chase facilitated financing for the renovation of Real Madrid's Santiago Bernabeu stadium. In addition, recent reports from SportBusiness Sponsorship indicated ongoing sponsorship discussions between Red Bull Racing and JP Morgan Chase.

In 2021, JP Morgan Chase became the inaugural strategic investor in Kraft Analytics Group (KAGR).

Furthermore, Inter Miami CF of Major League Soccer inked a naming rights partnership with Chase for their temporary stadium this year.

Chase's brand presence extends to prominent sports venues, including the NBA's Golden State Warriors' Chase Center and MLB's Arizona Diamondbacks' Chase Field.