Wall Street giant JPMorgan acquires stake in Robert Kraft’s KAGR

By: Wajeeh Khan
Wajeeh Khan
Wajeeh is an active follower of world affairs, technology, an avid reader, and loves to play table tennis in… read more.
on Jun 24, 2021
  • JPMorgan Chase & Co becomes KAGR's first strategic investor.
  • The two companies refrained from divulging financials of the deal.
  • JPMorgan is now about 20% up year-to-date in the stock market.

JPMorgan Chase & Co (NYSE: JPM) on Thursday bought a stake in sports mogul Robert Kraft’s sports-data company – Kraft Analytics Group (KAGR), reported the Wall Street Journal.

The deal, financials of which are yet to be disclosed, suggests that the largest U.S. investment bank sees growth potential in sports ownership. JPMorgan also highlighted that the wealthiest of its clients had been increasingly showing interest in investing in sports teams.

JPMorgan’s wealthiest clients want a piece of sports teams

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The financial service company wants to make the relevant data available for these clients to make strategic decisions. The head of lending at JPMorgan’s private bank, Vincent La Padula, said:

“I field five inquiries a week of people with interest in sports. You’re going to need more complex analytics, more data and a better understanding of how much a person spends at a stadium, when do they come, how long do they stay.”

JPMorgan saw value in KAGR’s services when it was advising Alex Rodriguez last year in leading a group that wanted to buy the New York Mets. Robert Kraft’s sports-data company helps organisations identify customers and better uses for their stadiums. Thus far, it boasts over 20 clients, including National Football League. According to the Wall Street Journal, JPMorgan marks its first strategic investor.

According to the American billionaire businessman who owns New England Patriots:

“The biggest thing we realised is everyone who buys a sports team, initially, they’re very focused on the field. Very few prioritise the business side, and this really helps to do that.”

JPMorgan had helped finance Los Angeles Rams’ new NFL stadium

The investment bank had helped finance Los Angeles Rams’ new NFL stadium. Its sports lending group had also committed $4 billion in investment for a new European Super League. But the plan collapsed on political outrage and strict criticism from the fans. The news comes a week after JPMorgan Chase acquired U.K.’s largest robo-advisor firm, Nutmeg.

JPMorgan shares were unbothered in premarket trading on Thursday. The stock is currently exchanging hands at $151 per share. This compares to its year-to-date high of $166 per share earlier this month and $126 per share at the start of the year.

JPMorgan Chase performed downbeat in the stock market last year with an annual decline of under 10%. At the time of writing, it is valued at roughly $458 billion and has a price to earnings ratio of 12.02.

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