WEBVTT

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The whole afternoon was just a fantastic
insight into what goes on

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during one of the two transfer
windows during the Premier League season.

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There's first of all two different
aspects of a transfer.

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There might be an initial upfront payment,
and typically the other club would work

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with me to, in this case, buy
Euros, sell Sterling.

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And the second aspect would be around
future payments.

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Transfers
are typically done in instalments

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and they can be over a number of years.

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I mean, we've seen, this season, eight
year contracts with with certain clubs.

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The risk here is of the clubs
ultimately in the future, buying Euros

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in this case, but not knowing what
exchange rate they might be using.

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And just to put it
a little bit into perspective,

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the Sterling-Euro exchange rate

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just in the last year alone, we've seen
a 5% range in that currency pair.

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And then in extreme moves, for example
Brexit, we saw a 10% a few years ago.

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If I did actually want to mitigate

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that risk of the exchange rate moving,
there are things that they can do.

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I work with clients around
looking at what their exposures might be,

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typically what known
payments or receipts they’re likely to get,

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and what impact an exchange rate
move might have, in this case

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a disadvantageous move,
working with them to provide solutions,

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but first of all, understanding
what their actual scenario is,

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and working as a partnership in effect,
and therefore providing solutions

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that might help them mitigate
that risk in the best way possible.