A sustainability bureau downgraded JP Morgan Chase after the US bank funded the failed European Super League (ESL) breakaway effort.
Six of England’s richest clubs, including Manchester United, Liverpool and Arsenal, were among the twelve European teams hoping to gain permanent membership of a new tournament. However, the project collapsed this week after a setback from supporters to heads of government in the UK and Europe.
Standard Ethics, which rates companies according to their sustainability and is modeled on credit rating agencies, has criticized the clubs as well as the bank.
“Standard ethics assesses the orientations of the soccer clubs involved in the project, as well as those of the US Bank, in violation of best practice of sustainability, defined by the agency according to UN, OECD and European Union guidelines. , and take into account the interests of stakeholders, ”it said.
In the light of the ESL, this downgraded JP Morgan from an ‘adequate’ rating to ‘non-compliant’. Standard ethics charges some companies a fee to rate it based on environmental, social, and managerial 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 a profitable league – were the Italian AC Milan, Internazionale Milan and Juventus, the Spanish Atlético de Madrid, Barcelona and Real Madrid, as well as the English 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.
Proponents of the league have argued that the new tournament would strengthen football. A person with knowledge of the league plans said the deal would include funding for sports and community projects at the grassroots level. JP Morgan has no control over the league’s strategy.
ESL founder Juventus chairman Andrea Agnelli said on Wednesday that the competition could not continue after the withdrawal of several clubs.
Standard ethics highlights the ‘serious negative consequences’ of the plan put forward by critics, including British Prime Minister Boris Johnson, French President Emmanuel Macron and Italian Prime Minister Mario Draghi. Many critics have highlighted the lack of involvement among fans.
JP Morgan’s previous assessment of the agency has raised concerns about its attitude towards fair competition, following US antitrust fines and taxes.
JP Morgan’s boss Jamie Dimon made the importance of ‘community’ for the company very clear in his annual letter to shareholders published earlier this month. He even referred to the importance of local sports teams for communities.
“For a good company, its reputation is everything,” Dimon wrote. ‘This reputation is earned day in and day out with every interaction with customers and communities.
“When I hear examples of people doing something wrong because they can be paid more, it makes my blood boil – and I do not want them to work here.”
JP Morgan Chase declined to comment.