Study On The Risk Of Chinese Enterprises' Trans-National Mergers And Acquisitions Professional Football Club

Since 2014,the promulgation of a series of policy documents on the development of football industry,such as "Several Opinions on Accelerating the Development of Sports Industry to Promote Sports Consumption" and "Overall Plan for the Reform and Development of Chinese Football",shows that China has raised the development of football to the national strategic level.According to incomplete statistics,from 2014 to the first half of 2017,in less than three years,the Chinese consortium has acquired 15 overseas professional football clubs,the domestic rise of cross-border mergers and acquisitions of professional football clubs craze.Cross border mergers and acquisitions of professional football clubs are not always smooth sailing.In October 2016,the first Italian football club to be acquired by a Chinese consortium was declared bankrupt.In July 2018,Li Yonghong lost ownership of the club by failing to repay on time his loan from Eliot Foundation for the purchase of AC Milan.It can be seen that cross-border mergers and acquisitions are unavoidably affected by various uncertainties.In order to achieve the expected objectives of mergers and acquisitions,enterprises must take precautions against various risks in the process of cross-border mergers and acquisitions.At present,the research on the risk of cross-border merger and acquisition of professional football clubs by Chinese enterprises is almost blank.In order to protect Chinese enterprises from losing investment in foreign football clubs,it is urgent to conduct a systematic and in-depth study on the risk of cross-border merger and acquisition of professional football clubs,which not only enriches the theory of cross-border merger and acquisition of professional football clubs,but also Cross border mergers and acquisitions of professional football clubs have practical guiding significance.According to the logic that professional football club is a special enterprise and on the basis of analyzing the motivation and characteristics of transnational merger and acquisition of professional football club by Chinese enterprises,according to the basic process and principles of risk management of enterprise merger and acquisition,this paper constructs a hierarchical holographic model to identify risks,double standards and evaluate the defense capability of defeating system.The research framework,through the collection of the experts on the risk situation evaluation opinions,research on risk of cross-border mergers and acquisitions China occupation football club of the enterprise,has the innovation of research perspective.The studyfound that the club football occupation of cross-border mergers and acquisitions Chinese enterprise influence risk mainly by non systemic risk,the influence of situational financing risk and capital chain risk economic risk in the enterprise merger and acquisition of the most serious consequences,which needs to be prevention.Exchange rate risk and information asymmetry,business management system integration,cultural differences,international management personnel shortage risk on mergers and acquisitions activities are second only to financing risk and capital chain breakage risk,also need attention.Political risk and legal risk and policy has little effect on mergers and acquisitions,can not be considered temporary.The article is divided into seven parts: the first part is the introduction,including the background,significance,literature occupation football club merger risk review,research methods and ideas of this study;the second part of the main occupation football club's own characteristics and this may lead to the risk of merger and acquisition is analyzed;the third part This paper analyzes the background of professional football in cross-border mergers and acquisitions of Chinese enterprises;the fourth part first combs the process and principles followed by the risk management of cross-border mergers and acquisitions,and then according to the characteristics of professional football clubs in cross-border mergers and acquisitions,constructs a hierarchical holographic modeling to identify the risk of mergers and acquisitions,the decision-maker's perspective to Study on the risk assessment framework and standard risk defense capability system rout;Part 5 by constructing the cross-border mergers and acquisitions occupation football club risk management framework,research on risk capital Chinese cross-border mergers and acquisitions occupation football club.Based on the evaluation of various risk scenarios by experts,the main risk scenarios faced by Chinese enterprises in cross-border mergers and acquisitions of professional football clubs are identified.The sixth part chooses two cases of Shanghai Pinyi Equity Investment Fund Management Center's failure in merging Italian Pavia Football Club and Li Yonghong's deep debt crisis in purchasing AC Milan Club,and analyzes the characteristics of professional football club and the steps of risk management in merging professional football club in combination with the foregoing.Summing up experience of transnational mergers and acquisitions of professional football clubs.The seventh part mainly puts forward some suggestions on the cross-border merger and acquisition of professional football clubs by Chinese enterprises,including raising the risk awareness of the merger and acquisitionenterprises themselves,rationally choosing financing methods,relying on merger and acquisition intermediaries,following the rules of professional football clubs themselves to formulate long-term and reasonable development strategic planning,giving play to the guidance and supervision of the government.Finally,the deficiencies of this study are summarized,and the future directions for further study are prospected.