As JP Morgan pulls out..
Clubs face £130m penalty after rebel league u-turns
Contract: Manchester United (pic: SNS Group).
Clubs which pulled out of the controversial European Super League are facing a penalty charge of £130 million.
The eye-watering figure is included in leaked documents highlighting details of the contracts signed by all 12 of the rebel clubs.
Manchester United, Liverpool, Arsenal, Manchester City, Chelsea, Tottenham Hotspur, Barcelona, Real Madrid, Atletico Madrid, Juventus, AC Milan and Inter were all announced as founding members of the breakaway league.
The radical move prompted a global outcry, with all but Barcelona and Real Madrid having made U-turns and withdrawn from the competition.
The leaked papers, published by Der Spiegel in Germany, show that a “break-up fee” could now come into force, with clubs who pull out facing a ‘£130 million’ penalty.
According to the leak, both Barcelona and Real Madrid were in line to be paid £52m each more than their rivals.
One page contained information that of the 15 founder clubs – which is the original 12 plus PSG, Bayern Munich and Borussia Dortmund, who were all due to be invited – AC Milan, Atletico Madrid, Dortmund and Inter Milan would receive a smaller share of the initial ‘infrastructure grant amount’.
The leak came after Super League clubs were told today by UEFA that they would not be punished in a sporting context for agreeing to join the rebel league.
The potential for sanctions was discussed at a UEFA executive committee today but the outcome is there will be no ejections from this season’s Champions League and Europa League, or any bans from next season’s tournaments.
US investment bank JP Morgan has withdrawn its £3.5bn backing of the Super League.
In a statement, JP Morgan said: ‘We clearly misjudged how this deal would be viewed by the wider football community and how it might impact them in the future. We will learn from this.’
It was thought JP Morgan’s financial commitment to the Super League plan was primarily going towards a payment of between €200m (£174m) and €300m (£261m) to each participating side.
Labour, meanwhile has called on the Government to publish the timescale of its football review and explain how it will be “fan-led” to make sure this truly is a “watershed moment” for our national game
Jo Stevens, Shadow Secretary of State for Digital, Culture, Media and Sport has written to Oliver Dowden to express concerns about the announcement of the terms of reference for the so-called fan-led football review.
“It’s not good enough for the Government to say that this review will be ‘expected to’ engage with fans,” she said. “They promised it would be fan-led and that’s what we need to see.
“We also need a clear timescale for completion so that the public can have confidence that the Government is serious about reforming football and making this the turning point fans deserve.”