JPMorgan Chase has established a specialized division focused on sports investment banking, aiming to capitalize on the burgeoning market, a company memo disclosed to Reuters on Tuesday revealed.
The banking giant has set up a “sports investment banking coverage group” dedicated to providing advisory and financial solutions for sports-related investments, including the acquisition of sports teams, to its worldwide clientele.
Fred Turpin, the global head of media and communications investment banking, highlighted in the memo, “The sports sector has evolved into a significant asset class, drawing an increasing number of institutional investors.”
According to the document, the collective worth of premier sports teams in North America and Europe has surpassed $400 billion.
The leadership of this new investment banking segment will be shared by Eric Menell and Gian Piero Sammartano, who will report directly to Turpin. Sammartano will also continue to report to Burkhard Koep, who oversees Telecoms and Media for Europe, the Middle East, and Africa (EMEA).
Despite a downturn in global mergers and acquisitions (M&A) to the lowest point in ten years, transactions within the sports industry have remained strong. The sports M&A sector reported transactions worth $22.6 billion last year, as per data from the Institute for Mergers, Acquisitions, and Alliances.
Deloitte, a leading consultancy firm, predicts that high-value sports properties will reach unprecedented valuations this year, with institutional investors keenly eyeing the industry for potential opportunities.
JPMorgan has been involved in several high-profile deals within the sports domain, including aiding British billionaire Sir Jim Ratcliffe in acquiring a minority stake in Manchester United.
The bank has also provided consultancy services to Liberty Media, the owners of Formula One, and the sports entertainment conglomerate World Wrestling Entertainment over the past year.
Moreover, JPMorgan’s sports financing arm has a history of funding stadiums and arenas for numerous teams across major U.S. sports leagues and internationally, such as financing for the iconic Santiago Bernabeu stadium of Real Madrid FC.
