The new Super League, which currently has twelve European top clubs, is supported by the major US bank JP Morgan.
The company confirmed this to the English news agency Press Association on Monday.
JP Morgan is thus securing the financing of the new competition, which is to secure guaranteed income in the three-digit million range for the participants.
During the “initial commitment period of the clubs”, solidarity benefits of ten billion euros could be paid out, the clubs had announced.
The founding members are to receive 3.5 billion euros in advance, "which is intended exclusively for the development of their infrastructure and to cushion the effects of the Covid pandemic".
JP Morgan Chase, the largest bank in the United States with total assets of $ 2.6 trillion and the third largest publicly traded company in the world, is funding what is possibly the greatest upheaval in European football since the 1950s.
The investment bank's bet: replace the Champions League.
Investment over 23 years
The US investment bank agreed to provide an initial € 3.5 billion investment to help a group of Europe's richest football clubs build a super league.
Overall, funding could swell to four billion euros, according to a person familiar with the matter.
Funders may be able to invest in the league later.
James Dimon has been CEO of the major bank JP Morgan since 2005
Source: AFP / MANDEL NGAN
Six teams from England and three each from Italy and Spain have registered so far.
They would play against each other in the new league during the week - a direct competition to the prestigious Champions League.
The league is to consist of 15 permanent members plus five other teams who would have to qualify each year to participate.
The twelve clubs have already contractually agreed to remain part of the Super League for a certain number of years, confirmed people with knowledge of the agreement.
That was a key factor in JP Morgan's commitment.
The financing of the big bank was fixed at an interest rate between two and three percent and apparently runs for 23 years, according to insider circles.
A JP Morgan spokesman declined to comment.
JP Morgan and Manchester United
JP Morgan's connections in the world's major sports go back at least 20 years.
In 2003, the bank advised the American Glazer family on the purchase of Manchester United, and just under a decade later also helped with the club's IPO.
United has signed up as a founding member of the Super League.
The club's vice chairman Ed Woodward is a former JP Morgan banker.
In recent years, the bank has also advised Rocco Commisso, an Italian-American billionaire, on the acquisition of Fiorentina and Dan Friedkin on the takeover of AS Roma.
JP Morgan also helped Italian clubs sell bonds backed by future media revenue.
In Spain support was given to Real Madrid to renovate the legendary Santiago Bernabéu.
JP Morgan's role is critical as the bank gives the new league the financial clout to raise billions in broadcast rights so clubs can try to generate higher revenue in the new league.
Threat to the associations
Even if the super league does not come, it is a strong threat to Uefa to make more concessions to the successful clubs.
If it does, however, it would also illustrate the declining influence of the traditional media companies, with which the founding associations apparently had no prior discussions.
Renegade clubs may have been encouraged by new technical means to take matters into their own hands: With the help of streaming, they could possibly at least partially bypass the established broadcasters and offer games directly to a younger fan base, including in Asia.