A curious failure in football – European style – teaches a lesson on the importance of stakeholders. Several teams came up with a scheme to create a new league.
The proposed league was to include 12 clubs. But when the effort was launched, fan reaction was very negative. So, six of the clubs immediately pulled out and the initiative collapsed.
To help finance the organizing expenses of the new league, JPMorgan had pledged $4 billion in financing. The loan was secured with future television rights payments made to the founding clubs.
Last week, the bank apologized, saying its decision to provide such financing had been a “misjudgment.”
The proposed league, formed to rival the Union of European Football Associations, the governing body of European soccer, would provide automatic participation in the annual championship competitions for its 12 members.
Those whose patronage will provide cash flow to companies are very important stakeholders whose views on the quality of products and services very much count.