Important points
- JPMorgan Chase & Co. has created a sports investment banking group to advise sports clients around the world.
- The combined value of U.S. and European sports franchises has grown to more than $400 billion, according to an internal JPMorgan memo.
- The new group will join JPMorgan's existing sports business, which has advised on the financing of numerous stadiums across the United States.
JPMorgan Chase & Co. (JPM) has created a new “Sports Investment Banking Coverage” group and appointed head of the program that advises JPMorgan's sports clients around the world.
“The group will leverage JPMorgan's substantial capabilities across investment banking, commercial banking and private banking to provide comprehensive advice and financing solutions to current and prospective sports clients around the world. ,” said Fred Turpin, global head of media and communications in the investment banking division. An internal memo sent to employees on Tuesday was shared with Investopedia.
The memo values the top U.S. and European sports franchises at more than $400 billion combined, calling them an “increasingly large asset class” that is attracting a growing number of institutional investors.
JPMorgan and other banks have in the past advised on sports mergers and acquisitions (M&A) without having a dedicated sports department, often poaching bankers from other teams to do so, he said. Bloomberg. Although the overall M&A sector was sluggish in 2023, the sports sector remained strong, recording more than $25 billion in M&A last year.
Eric Menel and Gian Piero Sammartano have been selected to lead the new advisory group, according to the memo. Mr. Mennell will take over from his current role as co-head of North American media investment banking, and Mr. Sammartano will join after previously serving in the same role in JPMorgan's Europe, Middle East and Africa (EMEA) investment banking practice.
Goldman Sachs Group Inc. (GS) last year created a similar “Sports Franchise” unit within its investment banking business, but the investment bank is looking to capitalize on the huge rise in valuations for sports teams in recent years. Trying to.
In the memo, JPMorgan said it had identified a number of companies, including Liberty Media, Formula One Racing, World Wrestling Entertainment (WWE), owner of Juventus FC, and British billionaire Jim Ratcliffe, who bought a minority stake. said he has advised sports franchises and clients. British soccer team Manchester United was finalized last month.
This new sports group is not JPMorgan's first step into the sports world. JPMorgan has an existing sports finance group that has advised on and provided financing for numerous deals related to the construction of new stadiums.
“We are excited about the opportunity to grow our global sports activities, supported by the collective efforts of our colleagues across the company,” Turpin wrote.
