Please ensure Javascript is enabled for purposes of website accessibility

Soccer's Super League Crashes and Burns Day After Launch

By Rich Duprey - Apr 21, 2021 at 11:11AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Fan backlash was too great for member teams to continue participating.

And just like that, it's over. The breakaway soccer league financed by JPMorgan Chase (JPM 1.28%) is already in shambles a day after its creation following a massive backlash from fans, players, rival teams and leagues, and the British government.

All six U.K. soccer teams, including Arsenal, Liverpool, and Manchester United (MANU -1.08%), have backed out of participating in the new Super League, and the Italian and Spanish teams are considering withdrawing as well.

Fans reacting to sports moment

Image source: Getty Images.

While the Super League was discussed as a possibility for months, it wasn't until the investment bank agreed to provide the teams with up to $6 billion in debt financing that it was able to lure enough clubs to make the break.

Spain's Real Madrid team was a key mover of the breakaway league, and had used JPMorgan previously to renovate the team's stadium.

Although the maneuver was packaged as a means of centralizing world-class soccer play, it was quickly targeted by critics as a way for the teams playing in the closed league to enrich themselves at the expense of small, less well-financed teams.

The founding clubs were promised a large cut of the billions in financing JPMorgan was providing: about $400 million each, or more than four times what they currently make. It was apparently too great a lure to resist, at least until the fans revolted.

The concept of a separate league open only to a select group of teams was never popular with the public, many players, and the global organizing groups such as FIFA, which threatened sanctions if the league did break away. The outcry following the announcement was immediate, and JPMorgan became a target for their ire for financing the rebel outfit, leading to the bank trending on Twitter.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

JPMorgan Chase & Co. Stock Quote
JPMorgan Chase & Co.
JPM
$114.05 (1.28%) $1.44
Manchester United plc Stock Quote
Manchester United plc
MANU
$11.00 (-1.08%) $0.12

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
316%
 
S&P 500 Returns
112%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 07/04/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.