UEFA is upgrading: Investor should pump billions into the Champions League


UEFA is upgrading
Investor should pump billions into the Champions League

The controversial new Super League could bring the participants high additional income. The investment bank JP Morgan plans to invest at least 3.8 billion dollars. According to a report, UEFA is working on an even bigger deal for its Champions League.

According to a report, the European football association UEFA is working on a six billion euro financing for its top competition by the British investor Centricus. This means that the Champions League could possibly receive even more funds than the planned, controversial Super League. Yesterday twelve of the financially strongest European clubs announced plans for such a new, exclusive top league. It is to be financed by the US investment bank JP Morgen with 3.8 to 6 billion dollars (3.15 to 5 billion euros).

UEFA has already announced opposition to the Super League plans. From such a league with a core group of permanent teams, the owners of clubs such as Real Madrid and Manchester City expect high additional and above all predictable income. Unlike in the Champions League, teams don’t have to worry about qualifying every year. A decline with corresponding financial consequences would not be possible for them. UEFA wants to prevent this break with its decades-old league system by all means. The association threatened, for example, with the possible exclusion of participating players and teams from other competitions.

Obviously, UEFA is also trying to make its Champions League financially more attractive. The deal with Centricus has been in planning for months, according to Bloomberg. A successful conclusion is not yet certain, it is said, citing insiders. Originally it was about a volume of a good four billion euros. After the plans for the Super League became known, the sum was increased to six billion euros.

Compensation for corona failures

UEFA and Centricus did not comment on the report. Details of how the money will be distributed and what consideration the investor will receive were not disclosed. As part of the planned Super League, JP Morgen promises the participants, among other things, immediate one-off payments of several hundred million dollars each, with which, among other things, income losses due to the corona pandemic are to be compensated.

Centricus was founded around five years ago by the former Deutsche Bank investment banker Nizar al-Bassam and the ex-Goldman Sachs partner Dalinc Ariburnu in London. The company claims it has assets of around 30 billion US dollars. Among other things, Centricus is already involved as an investor in FC Basel and part of a consortium that wants to invest 25 billion dollars with FIFA in new football tournaments such as the Club World Cup.

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