A sustainability rating agency downgraded JP Morgan Chase after it emerged that the US bank was funding the failed European Super League (ESL) escape attempt.
Six of England’s richest clubs, including Manchester United, Liverpool and Arsenal, were among 12 European teams hoping to join a new tournament permanently. However, the project collapsed into disarray this week following a backlash from fans against government leaders in the UK and Europe.
Standard Ethics, which assesses companies for their sustainability and is based on rating agencies, criticized both the clubs and the bank.
“Standard Ethics finds that both the orientations of the football clubs involved in the project and those of the US bank conflict with sustainability best practices defined by the agency according to the guidelines of the UN, the OECD and the European Union, and take into account the interests of stakeholders, ”he said.
It downgraded JP Morgan from an “adequate” rating to “non-compliant” in light of the ESL. Standard Ethics charges some companies a fee to rate them based on their environmental, social and governance performance, although JP Morgan’s rating was unsolicited.
The ESL plan was announced late Sunday night after secret negotiations between clubs. The ‘founding’ clubs – entitled to a permanent place in what could have been a lucrative competition – were Italy’s AC Milan, Internazionale Milan and Juventus, Spain’s Atlético de Madrid, Barcelona and Real Madrid, as well as England’s Arsenal. Chelsea, Liverpool. , Manchester City, Manchester United and Tottenham Hotspur.
JP Morgan’s investment bankers have reportedly committed € 3.25 billion (£ 2.8 billion) to the ESL plan, mainly for a payment of between € 200 million and € 300 million to each team.
The league’s supporters argued that the new tournament would have boosted football. One person aware of the league’s plans said the deal would include funding for grassroots sports and community projects. JP Morgan had no control over the strategy of the competition.
On Wednesday, ESL founder, Juventus chairman, Andrea Agnelli, said the competition could not continue following the withdrawal of several clubs.
Standard Ethics highlighted the plan’s “serious negative effects”, drawing the attention of critics including British Prime Minister Boris Johnson, French President Emmanuel Macron and Italian Prime Minister Mario Draghi. Many critics have pointed out the lack of involvement with fans.
JP Morgan’s earlier assessment by the agency revealed concerns about its stance on fair competition, following US antitrust fines and taxes.
JP Morgan boss Jamie Dimon wrote extensively about the importance of “community” to the company in his annual letter to shareholders published earlier this month. He even referred to the importance of local sports teams for communities.
“To a good company, reputation is everything,” wrote Dimon. “That reputation is earned day in and day out through every interaction with customers and communities.
“When I hear examples of people doing wrong because they could get paid more, my blood is boiling – and I don’t want them working here.”
JP Morgan Chase declined to comment.