Football Index

Sounds like this pyramid scheme is now in its death throes. Sounds like some people have been really stung.

 

Yeah I read the article the other day too. Creating more shares in popular players, then slashing their values. There was a funny bit in the article where they give a statement and refer players to the ‘safer gambling’ section of their website. It seems like they were actually trying to suggest what they’d done was in someway related to gambler welfare? Utterly bizarre.

Edit, this bit:

https://www.google.co.uk/amp/s/amp....football-index-customers-furious-market-crash

A spokesperson for the company said that one of Football Index’s top priorities is customer welfare, and that “as such, our decisions have been guided by a desire to help customers achieve the best outcomes and receive the best possible returns while also having the long-term sustainability of the business front-of-mind”.

The spokesperson also said that “yields had become unsustainably high compared to the level of activity on the platform”, which had made the decision to cut dividends “an unfortunate but necessary one”, adding: “We are aware of growing customer concern, especially among those active on Twitter.

“We would urge anyone concerned about the bets that they have made to get in touch with our customer service team and to refer to the safer gambling resources available on the Football Index website.

You what mate?

 

I had to sell my portfolio once I started working for clubs as it technically counts as gambling, but I would've lost a good wedge had I continued. Crazy that they just decided to change the rules, especially after trying to get people to invest heavily with new IPOs recently, knowing full well what the dividend change would do to the prices of players. Hope they feel the full force of the gambling commission.

 

The gambling commission won’t understand the product or they would never have allowed it in the first place. Unfortunate the company will make off like bandits on this one I fear.

 

They're registered with the gambling commission (https://beta.gamblingcommission.gov.uk/public-register/business/detail/43061) so imagine they'll have to face some penalty if found guilty of any wrongdoing.

 

Liked for 'gamblification'.

 

Very light touch. Not like being regulated by the FCA.

 

I cannot believe that people still fall for the "get rich quick" schemes.
It's a casino . For every winner there are losers.
There is a quote from someone whose name evades me regarding the
stock market crash during the early part of the last century.
"When the shoeshine was giving me stock market tips I knew it was time
to get out "

Crypto is the next "get rich quick" scheme to take your money
Get your money out while you still can and put it back into your Post Office
savings book is my advice.
#SouthSeaBubble

 

If you treat gambling as a pastime/entertainment and spend a limited amount per month on it, great. If you think it is a get rich exercise then you are a fool.
There are some winners, lots of loses and the house always makes money, so there must be less being paid out than punters put in.

 

http://wfcforums.com/index.php?threads/football-index.56769/page-2#post-2976561

Yes the search function on this site is variable in its responses, never seems to work well for me.

 

The last paragraph from that Guardian report says it all:

Football Index is a betting firm, regulated by the Gambling Commission. But its website and business model mirrored a market-making platform for derivatives trading, and one of many questions that will need to be answered if or when the platform
folds is why the Gambling Commission, and not the Financial Conduct Authority, was the regulator responsible for overseeing its operation.

This is clearly a share dealing thing, but in this case the commodity was intangible and effectively worthless.

 

I must admit, I've never really 'got' gambling, although I have great sympathy for those who become addicted to it. Unless you are going to win a life-changing amount - say enough to buy a house - I don't see the point in risking £100 to win £500. I enjoy a day at the races and will put on a few bets fully expecting to lose but I recognise it as part of the cost of the day out. If I win, it just pays for a few drinks and that's it. I don't get any thrill from it.

 

I must admit, initially I assumed they made their money (if it was legit and run fairly) taking a spread when people bought and sold shares in players, and that would certainly lends itself more to being a financial product.

If they didn’t make their money like that (and they clearly didn’t) then the whole thing was obviously massively flawed, because you’re buying shares in player hoping they’ll go up in value directly from the company who can control their value. A bit like placing a bet with a bookmaker who can choose the outcome of the bet.

 

You weren’t allowed to short players. You could only buy. And every player declined to zero after 3 years. It was a scam from day 1.

 

As I understand it they set a value, which may have been from an algorithm, but it seems flawed.
It's a million miles away from the traditional bookie, I can't really comment further as it's not my area of expertise but unlike the exchanges which caused consternation within the industry when they started, the football index didn't even register a ripple.

 

Does anyone know much about Five Yards? I keep seeing it advertised (although seeing as I don't live in the UK I can't even access the site) but intrigued as to how it differs structurally from Football Index, seeing as they appear to be similar products (trading based on scouting and buying/selling fictional 'shares' or 'holdings' in football players).

 

Crucially they could change the terms of the “dividends” half way through the contract. Complete farce.

 

Listen people.
If you have some dough then there will those who
will try and relieve you of it with "too good to be true " investments.
Don't be that mug who lost everything .
No more to say

 

How much do you charge for this advice? Where should I send my cash? Thanks.

 

Nothing . Cos it's free .
Ask any sane person .
They will tell you the same

 

Or ...listen to me and if you have £1 000 then in 1 year you will have if you invest carefully
at the Halifax , you will have £1001 . However some toe rag will tell you that if you invest in
avocado then your £1000 might become £2000. Or not . If you read the small print.
Don't blame me if your £1000 becomes FA tho

 

I got out about 6 months ago with an ok profit, around the time Van Beek moved to Utd (I’d added him to my portfolio). Glad I did now.

 

Where do you think the money comes from if you make a profit ?
Do you think the BofE fire up the presses and print some £notes?.
Seriously , don't be a mug .

 

BBC report here https://www.bbc.co.uk/news/business-56401707

 

Hey @Jlappy , any chance of an update?