By Dhirendra Tripathi
Investing.com – Manchester United (NYSE:MANU) shares were up more than 7% after joining a $6 billion European soccer league that has JPMorgan (NYSE:JPM) as one of its sponsors.
"The formation of the Super League comes at a time when the global pandemic has accelerated the instability in the existing European football economic model," Manchester United said in a statement. Higher-quality matches and additional financial resources are necessary to support the industry, the team said.
Manchester United is saddled with net debts of £455.5 million ($633 million), according to its latest accounts, and increased borrowing by £60m during the pandemic as playing to a closed Old Trafford cost the club about £6m a game, The Guardian said.
Not everyone was happy about the news.
“Plans for a European Super League would be very damaging for football and we support football authorities in taking action. They would strike at the heart of the domestic game, and will concern fans across the country,” U.K. Prime Minister Boris Johnson tweeted.
Manchester United’s billionaire co-chairman Joel Glazer will be the vice-chairman of the new league.
The breakaway football league so far has commitment from six English clubs and three each from Italy and Spain, including AC Milan, Arsenal, Atlético Madrid, Chelsea, Barcelona, Inter Milan, Juventus, Liverpool, Manchester City, Manchester United, Real Madrid and Tottenham Hotspur. Three more clubs are expected to join by the inaugural season, expected to begin soon.