JPMorgan Chase establishes new sports-focused investment banking team

JPMorgan Chase (JPM.N) has unveiled plans for a specialized sports investment banking team aimed at tapping into the burgeoning sports industry, according to an internal memo obtained by the media on Tuesday.

The newly formed "sports investment banking coverage group" will provide advisory and financing services for a range of activities within the sports sector, including investments in sports franchises on a global scale.

Fred Turpin, the global head of media and communications investment banking, emphasized the growing significance of sports as an asset class in the financial landscape. "Sports has become an increasingly large asset class, attracting more and more institutional investors," Turpin stated in the memo.

Highlighting the substantial value of top sports franchises in the United States and Europe, the memo noted that these entities are now collectively valued at over $400 billion.

Leading the newly established team are Eric Menell and Gian Piero Sammartano, both of whom will report directly to Turpin. Sammartano will maintain his reporting line with Burkhard Koep, the head of Telecoms and Media EMEA.

Despite global mergers and acquisitions (M&A) volumes hitting a decade-low last year, dealmaking within the sports industry remained robust. According to a report by the Institute for Mergers, Acquisitions, and Alliances, sports M&A activity amounted to $22.6 billion.

Consulting firm Deloitte anticipates that premium sports properties will continue to command record valuations this year, as institutional investors increasingly seek opportunities within the sector.

JPMorgan has been actively involved in various deals within the sports industry, including advising on British billionaire Sir Jim Ratcliffe's recent acquisition of a minority stake in Manchester United (MANU.N). Additionally, the bank has provided counsel to Formula One owner Liberty Media (FWONA.O) and sports entertainment group World Wrestling Entertainment in previous years.

Notably, JPMorgan already boasts a sports financing franchise that has financed stadiums and arenas for numerous teams across major U.S. sports leagues and globally, including the emblematic Santiago Bernabeu stadium of Real Madrid FC.

Source: Reuters