The Currency of Sport

Seeing London Wasps competing against Stade Français, Sir Bradley Wiggins winning the Tour of California and Jonny Wilkinson ending his playing career in France, the evidence is all around us that sport is increasingly international in nature. And preparation by sports men and women and the teams in which they compete is ever more focussed and detailed; I offer Dave Brailsford as evidence of that.  

How odd it is then that so few sportsmen, sportswomen or sports organisations take the same care or make the same preparations when it comes to their international funds movements. 

Tour costs are often covered with credit card payments, sponsorship receipts exchanged at whatever the exchange rate is at the time, transfer fees pushed through on an ad hoc basis. These are just some of the areas in which a little bit of forethought, a modicum of planning and the assistance of a currency market specialist can save significant amounts of money. Money that would normally just be lost in the melee of the payment process and is largely unidentifiable because it is clouded by the exchange rate spread.

Currency specialists, Halo Financial, are finding increasing traction in the world of sport and sport management by saving money for their clients; often through very straightforward risk management techniques.  

For example, where sponsorship payments are due to be received a month or so in the future, automated orders can be used to ensure that the recipient will achieve an attractive rate and is not risking their income being diminished even if the exchange rate moves negatively in the intervening period. In a market where exchange rates regularly fluctuate by 5-10%, good risk management regularly improves income by similar percentages.  

It is also clear that many management companies and sports personalities themselves are so absorbed in the day to day that they do not have time to constantly monitor exchange rates. Why would they? So having a contact in the foreign exchange market who will flag up those opportunities and offer solutions on the planning aspects of currency requirements can be a godsend.

Ultimately, most people who have a foreign exchange exposure just want two questions answered; 'is now a good time to exchange my funds?' and 'if not now, then when?' They are good questions and the right questions to ask. A good broker would want to know, 'when did you know about their requirement?' because good forward planning that allows you to take advantage of the volatility but de-risk the downside.

Life is much simpler and cost effective if you have someone with market expertise who can answer your questions and who can ask the right questions as well as offer the right solutions to help you make better plans.

It makes the world of difference in the world of sport.

By David Johnson, Technical Analyst and Director, Halo Financial.

For a free no-obligation consultation, call +44 207 350 5470. Or visit www.halofinancial.com/mei  

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