I'm pissed off because it isn't mistakes i've made in the platform that has made me lose my money it's the mismanagement of the people running it. There have been lies upon lies from the people in charge about future updates since last summer and nothing ever materialised, even in January they were telling us that the finances had never been in better shape. There are threads on twitter where people have put together a timeline of the updates from FI and showing how little of it was ever implemented. The issues all started about this time last year when football stopped. Football Index removed the safety net of being able to sell any shares for a set percentage price of their value and it all went downhill from there. They implemented a half arsed order book system which led to everyone undercutting each other in bidding for players and it just died a death. The only hope now is that one of the big bookies sees some life in the concept and takes it on. The concept is a good one and could work with the right people running it. Like I said even though I had a portfolio into 4 figures it is money that I have drip-fed into it over the past 4 years or so and I've never put in anything that I couldn't afford to. Some people have put life savings in.
As someone with a gambling problem (not put a bet on for 5 months now!!!) Even I saw this site for what it is, where was the money coming from to pay out these dividends? Still there are people defending the idea and saying the collapse is due to the mis-management of the site rather than admitting that the problem was the ponzi-style business plan which relied on new money entering the market to keep it afloat. There's a reason why in a highly competitive market, no one has even bothered to have the same idea, I'm sure the gambling commission won't be issuing a license again either to such an idea. Isn't there a license through the stock exchange? (out of my depth here), but then your profits would be taxed. Feel sorry for the people caught up in it, hopefully the people behind it will be seeing prison sentences.
It's really dreadful for people i've seen on Twitter who are literally losing life savings. I just don't get how it isn't a pyramid scheme though and how it could theoretically work in the long run even under different management. The reason that player prices went up was because more people bought into them, but the 'player' wasn't backed by anything like a company would be. A company would be backed by income and revenue, but the player people were buying into isn't backed by a thing other than a name. There's no external income coming into a 'player share', it's purely whether people think he's going to improve, but the issue with that is that people aren't betting on that same player to get worse (shorting it), they just buy other players. There's no future potential external revenue stream coming into those individual 'player share', so the only potential reason it would rise is that another person will come in and buy it off of you. I do hope that people looking in from afar learn a lesson from it though about diversification though, but obviously that's no consolidation to those that have lost out.
I think the idea was for the transaction fees to cover the dividends. Each time players were bought and sold you incurred charges and with players dipping in and out of form, getting injured and transfer speculation there was always a reason to buy or sell players.
A players “revenue” would be his performances. He’s goal, assists and media mentions. So when a player was in form it would be the the same as a company posting good financial results for the last quarter. I only had £50 in FI (which I’ve not looked at for about 2 years) but I do think the model could work. To make money in it you needed to invest time too.
I read this post somewhere else which summed up my feelings about it, when I joined the site briefly, and my feelings on it now. "I'm a bit of a laymen when it comes to this, so can someone confirm what I'm assuming to be true, people were buying fictional stocks in footballers that create no income other than people buying them and were paid dividends on a stock that doesn't create any money through products or sales and thus doesn't generate any actual income itself, instead received money from money which was from a percentage of the buy and sell of worthless stocks yet people have invested thousands? Why would people invest into something like that when they could invest in actual stocks on a company which makes profit? What am I missing?" I get that the commission from people trading was the way to create profit, but it still smells of needing more money from new users to keep the money in the game. I see there are still people defending the concept, despite it losing people millions. I did the same for many years when I gambled, I always blamed other reasons for not winning, for it not being profitable while not admitting the truth that it was never going to be profitable. If anyone on here has lost thousands on it and feeling like sh*t, send me a message, I've been there before but with match betting.
I get that aspect, but the revenue isn't anything financial. It's not like you are buying shares of the actual player so it's backed by his income and sponsorships, it's all ratings that FI have come up with not backed by anything other than the income of people buying those shares. The good financial results mean something, it's that the company is remaining profitable or on the way to it. The marketcap of a company should never (or in very rare circumstances) drop below the assets of the company, but the 'player shares' have no assets to them. The only way I see it working is if it was a market of 'I don't think the player will do well' vs. 'I think the player will do well'. The reason it's 'you need to invest time too' is because that is time for more people to buy into it. If FI said no one else buy a share and keep exactly what you have from now until 3 years time, no matter how well a player does, that amount does not increase, nor do the assets or worth of that player until more people buy into the share.
Im just glad I never went through with taking the site serious, several times I was on the verge of investing a few bob in there but there was always a niggling doubt at the back of mind. Having been doing matched betting for 6 years and seen numerous bookies just go into admin and people losing good cash and even myself having to chase a few of them around to get cash I had in them (luckily never anything too large) gave me these doubts. Thankfully I heeded them. Gutting for those that have lost money...some huge figures The email I recieved today off the Administrators for the site doesnt read pleasant for those with cash in there. Asking you to throw claims in but under the understanding your claims may not even be accepted. Unless a bookie or some other company takes over the reigns, I can't see anyone getting anything off them. Doesn't look as if they had the punters funds protected in anyway.
There was a thread about this on PA, someone mentioned it was just like a big pyramid scheme and that's what it sounded liketo me so never bothered with it.
Glad i got out when i did. I never invested serious money, just a few bob here and there and i pretty much doubled my money before selling it all off when the pandemic hit
Don't know, maybe it's better to join a more reputable bookie, like Bet 365 or Paddy Power, etc? The latter has a very interesting signup offer, btw https://www.top-betting-sites.co.uk/reviews/betway/
