Financial Strategies for Global Expansion of Manchester Football Club

This report delves into the international finance considerations for Manchester Football Club's global expansion. It begins by outlining various options and strategies for a football club to become a multinational corporation, with a specific focus on Manchester FC. The report then explores the financial risks associated with global expansion, including market, credit, liquidity, and operational risks. It also identifies financial instruments required to fund a global corporate strategy, such as equity funding, loans, debt financing, and venture capital. Finally, the report discusses methods to maximize returns and minimize risks in the context of international finance, providing a comprehensive analysis of the financial aspects of Manchester FC's global ambitions. The report uses various financial and business strategies to analyze the objectives to maximize returns and minimizing the risks.

INTERNATIONAL FINANCE

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Options and strategies available to a football club in becoming a multinational corporation....1
Options available to Manchester football club subject to global expansion...............................3
Financial Risks associated with Global expansion.....................................................................1
Financial Instruments required to fund a global corporate strategy............................................2
A range of methods that meet the objective of
maximising returns and minimising risks..................................................................................3
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................5

INTRODUCTION
International finance is a concept of monetary economics and international
macroeconomics. It is analyse that international finance requirement mainly based upon
management and operations of business at global level (Frieden, 2015). This report is prepared
on the basis of global business expansion of football club. International corporate strategies and
plans are in terms of connecting the strategies. Risk and potential growth factors associated with
international market place are find out subject to global expansion. Methods are used to analyse
the objectives to maximising returns and minimising the risks.
MAIN BODY
Options and strategies available to a football club in becoming a multinational corporation
Football or soccer is one of the famous sports in the world played by 200 countries and
dependencies. Its popularity is highest in the world comparison to other games. Manchester
United Football Club is one of the common and famous football club in England. By increasing
popularity of football as a endurance sports most of the countries are adding this game to their
national games categories. There is a huge opportunities formed in front of Manchester club.
This club is a part of various leagues as FIFA, UEFA and LA LIGA. From past decades the
interest of people and viewers get increased for football and soccer. It is observed that type of
football clubs are seeking for global expansion (Review on global expansion of MFC, 2018).
Concept of global expansion remain similar for any entity, segment, corporation and
association. The strategies are found common in terms of global expansion. There are type of
global expansion policies are defined that can be emerge the football club to international level.
Multi domestic strategies: It is a type of an international marketing or global expansion
policy that helps organisations and association to introduce them at global level with more
effective and efficient manner. The policies advertisements, commercial aspects and efforts are
the main concepts considered in this strategy that helps in demonstrating the changes accurately
and significantly. Multi domestic strategies helps in ascertaining the opportunities and growth in
international market (Avdjiev, McCauley and Shin, 2016). The demographic changes are also
remain the barrier factor for global expansion. These policies mainly associated with the
presentations and appeal to local sensibilities. This approach mainly helps in analysing the
efforts and the mass market approach for determining the multi domestic approach. This mainly
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helps in analysing the sources and the local facilities required at global level for global
expansion. Valuable aspects are considered with some leading strategies compressed with
international marketing and business strategies (Gollnhofer and Turkina, 2015). Range of
accounting policies are considered in terms of managing the global invention an domestic plans.
This can regularly give significant experiences into the subtleties of the common culture
in a territory, which prompts motivation on the most proficient method to exhibit the items to
best preferred standpoint. By setting aside the opportunity to figure out how to associate with
buyers, it is conceivable to utilize the multi domestic technique to make a wide range strategies
that can be adjusted to fit markets that offer a great deal of likenesses, while as yet modifying the
publicizing and showcasing endeavours to coordinate precisely with the neighbourhood culture
(Peng, 2012). While utilizing a multi-domestic technique can be fairly exorbitant toward the
front, the exertion can satisfy. Accepting the items do in reality catch the consideration and the
steadfastness of the nearby masses, those early endeavours can yield returns over various years,
potentially even decades. Consequently, any business trying to end up set up and construct a
devoted customer base in various diverse land territories will need to think about the capability
of this specific promoting procedure. See worldwide technique.
Global strategies: This international strategy mainly based upon efficiency emphasising
marketing strategies that help in understating the market and global business scenarios. This
strategy is different form multi domestic strategy. Manchester football club has to analyse the
global image of football club and it helps in determining the economies scale in various markets.
This helps in determining the plans products and services in each market. Manchester Football
Club can adopt the policy adopted by Microsoft before introducing it self in international market.
These strategies may differ form the existing structure and policy that might be combine the
section with more strategic and specific manner. This strategy is carried out to demonstrate the
changes with services and deliverables as per the perspective of various analytical rules for
developing the formation.
Transnational strategy: This strategy is considered a conservative global business
expansion policy mainly depends upon efficiency subject to need of local preferences. This is
slightly differ form global strategy that helps in determining the target and audience in mind.
International business strategies and the plans mainly presented with global business activities
for coordination and communicational changes. In transitional strategy an organisation expand
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its services and products on the basis of clients preferences. MFC need to analyse the fan club
strength at global level.
Options available to Manchester football club subject to global expansion
Manchester has been a brand name in football club dictionary and type of growth aspects
are associated with the growth and development of community. Consistently the procedure and
changes associated with the spendings upon different countries. Players has been developed at
large level in terms of managing the sections and the leagues for connecting the clubs are also
consolidated with various forms (Seto, Güneralp and Hutyra, 2012). It has build up a brand
image after winning 25 international and domestic trophies. It has won 13 leagues title that
presents the positive image of Football club across the country. There are some opportunities are
found in terms of global expansion of football club. Various aspects are considered in terms of
determination. Potential factors are also can help the management committee to introduce the
football club to international level.
AS per the data 659 million followers in worldwide that indicates positive brand image
and open door for global representation. Chelsea have been garbed the title of premier league
already that is the main reason that increased the possibilities of Manchester for global
expansion. USA, Canada and South America are the main countries have already been
considered for communicating the global strategies. Innovations and challenges are also some
essential aspects considered essential for considering the changes with practical reasons and
changes. Manchester has a chance to develop the structure at global level. It is require to analyse
the equalisation and the competitive resources between the club and English football.
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Financial Risks associated with Global expansion
The Risk management is essential aspect of running a successful business. There are
various types of financial risks associated with the global expansion for Manchester football
club, as the management of club wants to expand it globally at international level. Club's
management has varying levels of control regarding risk. Some risk are beyond of organization's
control and some risk are in control, the risk management always try to minimize the anticipated
risks.
There are four types of financial risk associated with the global expansion of Manchester
Football club.
 Market risk: The market risks comprises with the risk regarding the changes in specific
market conditions in which a organisation competes the business. As in case of
Manchester Football club market risk associated with it, as the risk of being defeated by
competitors and not only this, in an increasing competitive global market place, operating
with narrow profit margins. The organisations which are able to make the necessary steps
to minimize such risks, will enjoys the substantial revenue growth and vice versa (Kinkel,
2012).
 Credit Risk: credit risk refers to that risk which is associated with companies financial
risk, means risk of over creditors with narrow profit margins. As in case of global
expansion of Manchester football club requires huge amount for investment, it is
impossible to invest whole amount by equity the credit is essential for expansion.
 Liquidity Risks: Liquidity risks means operational funding liquidity risk. Seasonal
downturns in revenue can leads to shortage of funds in liquid form to meet basic
expenses to continue the basic operations. As in case of Manchester football club in off
seasons it is difficult to earn the sufficient revenues so it becomes difficult to meet basic
expenses for operation. Because regular inflow is essential to meet daily basic operational
expenses.
 Operational risks: operational risks refers to the various risks associated with basic
operation of the organisation. The operational risks comprises with several problems
Lawsuits, fraud risk, personnel problems and business model risks. Moreover the risk
associated with organisation's model of marketing and expansion or other growth plans.

Financial Instruments required to fund a global corporate strategy
The financial instruments required to fund a global corporate strategy or to expand the
organisation at globally. As in case of global expansion of Manchester Football club the financial
instruments that can be used by the Manchester's management are as follows.
Equity funding: The most appropriate source of finance is funding from potential equity
investors as by using equity funding it increase the owner's fund and reduces the debts or
obligations which results in smooth functioning of organisation and increase in revenue as due to
no obligations. As in case of Manchester football club it is an appropriate source of finance as
beneficial in period of downturns.
Loans from financial institutions: It refers to the source of outside financing as more
and more owners [in case of equity funding] are also not good for the organisations. For the
global expansion of Manchester clubs it is also suitable source of finance but the financial
management must be able to arrange the capital structure [debt-equity ratio] properly accordance
with the condition of organisations (Harrod and O'Brien, 2012). But, in some cases it leads to
obligation burden over the organisation which affects the earnings also.
Funding from debts: Funding from debentures and bonds, another source of finance
which is beneficial after a certain period of time. In case of Manchester club the management can
issues the debenture may be convertible or non convertible, but convertible will be most suitable
as after the specified period of time at the time of their redemption the debentures will converted
in equity funds as the amount of funding will remained with organisation, only the interest on
debentures will be payable till the redemption or conversion after conversion, the amount
generated by debentures will held by organisation as owner's equity. This will also a suitable
choice of financing for global expansion.
Venture capital: IN modern times this source of finance is also suitable for expansion
and future growth of the organisation. Venture capital generates by the joint venture or
amalgamation of two or more organisations (Wu, Wu and Zhou, 2012). As ion case of
Manchester Football club, for global expansion the club can merge or form of joint venture with
other clubs who participates in FIFA like Asia football club or many more, can represent itself
globally by merging with other clubs and can easily expands itself globally.
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A range of methods that meet the objective of
maximising returns and minimising risks
It is important for any global or domestic organisation to minimise the risk and
maximising the profitability of organisation. The prime objective for every global expansion
organisation to analyse international financial requirements and find out the assessed risk. Risk
factors are the main barriers that create complex situations and possibilities for compressing the
liabilities towards long term financial credits in effective and efficient manner. Manchester
Football club is seeking for global expansion by arrangement the financial sources from different
sources. The financial instruments were mainly supposed to consolidated with the strategies and
plans subject international marketing. There are three major methods can help management
committee of MFC to minimise the risk factors and maximising the profitability.
Assets allocation
Appropriate allocation of assets helps to analyse right fluctuation of portfolio to meet the
targets and objectives of business. It is a single part of strategies and plans are the main
investment techniques for creating changes and evaluating the success of organisation (Boscor,
Bratucu and Baltescu, 2013). As per this methodology 80% of the assets remain in stocks and the
20% ratios are retained in the forma of bonds that maintains the adequate ratio of assets
management and risk management. These policies also helps in making the portfolio with more
sustainable and developing structure. There are three assets are classified subject to risk
management.
Stocks: A high level of market risk and short term fluctuating markets were counted at
hight level of market over the short terms and long term financing risk.
Bonds: It is evaluated that the short term changes and variations also impact the
commodities at lower market risk. Main principle is associated with lower long term returns and
higher inflation risk over a period of time.
Money market instruments: These instruments are managed on the basis of sitting the
price at $1 dollar. This can enhance the ability of conditional work and enforcement of
requirements. Federal deposit insurance corporation and government policies are the main
elements considered in this
Portfolio diversification
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It is the suitable measures to reduce the financial risks. As in order to minimize the
financial risk then the organisation must reduce the limit of loans. Obligations must not be over
then the assets of the organisation (Shao and et. al., 2017). The amount that needs to borrow
depends upon the unique financial position of the organisation. Moreover, if it is possible to fund
or expand the business without loans that would be ideal to reduce the financial risks.
CONCLUSION
The above report summarise the international financial challenges while expanding
business at global level. Type of international expansion strategies and theories are considered in
respect of expanding the business at global level. Available financial resources and tools are
identified in terms of incorporating the risk and minimising them for better profitability. Methods
are defined in respect of minimising the risk of financial instruments and maximising
profitability.
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REFERENCES
Books and Journals:
Avdjiev, S., McCauley, R.N. and Shin, H.S., 2016. Breaking free of the triple coincidence in
international finance. Economic Policy. 31(87). pp.409-451.
Boscor, D., Bratucu, G. and Baltescu, C., 2013. Drivers of the international expansion of
emerging-market multinationals. Bulletin of the Transilvania University of Brasov.
Economic Sciences. Series V. 6(1). p.9.
Frieden, J., 2015. Banking on the world: the politics of American international finance.
Routledge.
Gollnhofer, J. F. and Turkina, E., 2015. Cultural distance and entry modes: implications for
global expansion strategy. Cross cultural management. 22(1). pp.21-41.
Harrod, J. and O'Brien, R. eds., 2012. Global unions?: theory and strategies of organized labour
in the global political economy. Routledge.
Kinkel, S., 2012. Trends in production relocation and backshoring activities: changing patterns in
the course of the global economic crisis. International Journal of Operations &
Production Management. 32(6). pp.696-720.
Peng, M.W., 2012. The global strategy of emerging multinationals from China. Global Strategy
Journal. 2(2). pp.97-107.
Seto, K. C., Güneralp, B. and Hutyra, L. R., 2012. Global forecasts of urban expansion to 2030
and direct impacts on biodiversity and carbon pools. Proceedings of the National
Academy of Sciences. 109(40). pp.16083-16088.
Shao, Q. and et. al., 2017. Bayesian sparse polynomial chaos expansion for global sensitivity
analysis. Computer Methods in Applied Mechanics and Engineering. 318. pp.474-496.
Wu, D., Wu, X. B. and Zhou, H. J., 2012. International expansion and firm performance in
emerging market: evidence from China. Chinese Management Studies. 6(3). pp.509-
528.
Online
Review on global expansion of MFC, 2018. [online]. Available
through:<https://www.thenational.ae/sport/football/how-manchester-city-developed-a-
global-network-of-clubs-1.766476>.
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