By continuing to use the site, you agree to our use of cookies and to abide by our Terms and Conditions. We in turn value your personal details in accordance with our Privacy Policy.
Please log in or register. Registered visitors get fewer ads.
Interesting read in the Observer about the problems QPR (and Forest) shirt sponsors Football Index are going through. I thought they were just another betting company (never really looked into it...) and hadn't realised, that they 'traded' in virtual player values, with customers betting on their future values, rather like on the Stock Exchange. Football Index customers can buy and sell these virtual shares - only thing is, values have crashed because of Covid and customers are likely to take a massive hit when selling - if they can even find a buyer...
From the article (which is now on the Guardian web site):
A series of share-price crashes and rule changes on the betting site Football Index has led to increasing concerns that its clients now have millions of pounds trapped in the platform that has no protection if the firm ceases trading.
Football Index, the shirt sponsor of Nottingham Forest and QPR, is a self-styled football stock market where users trade virtual shares in top players. It was launched in 2015 offering “a challenge” to traditional forms of betting on football.
It sells time-limited “shares” in footballers that can then return “dividends” over the course of a three-year contract. Dividends normally range from 1p to 14p per share and are based on the player’s performances on the pitch and their media profile. The shares can be sold to other users to retrieve some or all of a user’s stake from the exchange — but only if the owner can find a buyer.
This has become increasingly difficult of late after crashes in the price of shares. A share in Borussia Dortmund’s Jadon Sancho cost £15.04 in early September, falling to £12.33 on 15 September and has since hit a series of lows: £10.31 on 3 October, £5.76 on 19 November and £4.20 on 22 December. A share cost £5.28 on Thursday, a 65% drop from its peak.
Full article, including suggestions of dodgy dealings, threats and intimidation (bring back Gianni Paladini, all is forgiven...) is here:
Styles itself as a stock exchange type platform - but the "shares" you buy are absolutely meaningless, where do the dividends come from? You buy shares in a listed company, listed company earns money, pays dividends to shareholders. You don't actually own a share in a player, if you buy 0.5% of Ebere Eze (or whoever) and he gets a big new contract, or a big transfer, there's no money coming into the platform to give you a return on that, just from other people bringing new money into the market.
So, its definitely a betting platform, and its more like an exchange where you're gambling against other people. But only as long as there's money in the platform from all the players is the likelihood of money staying in there.
To be honest its just always looked like a giant pyramid scheme to me, dressed up as something reputable. Once they pull out, or there's not enough money coming in, the whole thing comes tumbling down. I hope there isn't anyone who actually has serious amounts of money invested in it!
1
QPR shirt sponsor Football Index in trouble... on 10:46 - Jan 20 with 4812 views
QPR shirt sponsor Football Index in trouble... on 10:44 - Jan 20 by slmrstid
As a platform, it makes no sense.
Styles itself as a stock exchange type platform - but the "shares" you buy are absolutely meaningless, where do the dividends come from? You buy shares in a listed company, listed company earns money, pays dividends to shareholders. You don't actually own a share in a player, if you buy 0.5% of Ebere Eze (or whoever) and he gets a big new contract, or a big transfer, there's no money coming into the platform to give you a return on that, just from other people bringing new money into the market.
So, its definitely a betting platform, and its more like an exchange where you're gambling against other people. But only as long as there's money in the platform from all the players is the likelihood of money staying in there.
To be honest its just always looked like a giant pyramid scheme to me, dressed up as something reputable. Once they pull out, or there's not enough money coming in, the whole thing comes tumbling down. I hope there isn't anyone who actually has serious amounts of money invested in it!
I put twenty in and took 18 out but a tenner of that was a free opening offer so I mad in theory £8, I have read online that some people have invested tens of thousands!!
favourite cheese mature Cheddar. FFS there is no such thing as the EPL
QPR shirt sponsor Football Index in trouble... on 12:19 - Jan 20 by loftboy
I put twenty in and took 18 out but a tenner of that was a free opening offer so I mad in theory £8, I have read online that some people have invested tens of thousands!!
Wow, that is seriously scary - especially as the platform seems able to change the rules along the way.
Interesting to know how virtual values are arrived at - and who influences those valuations?
Yes, cash-strapped clubs benefit from their sponsorship, but I really think shirt sponsorship by betting companies should be banned. Compulsive gambling is so destructive.
QPR shirt sponsor Football Index in trouble... on 12:11 - Jan 20 by wombat
you can get good money on todd kane , get on before barca snap him up
Old news now but the government of the Seychelles invested heavily in Yoann Barbet shares. The own goal he poked home up at Barnsley last October led to the Island’s welfare system crashing and the closing of two hospitals. (Ya happy now Yoann?) In attempt to recoup their losses they’ve gone in early and bought big on Charlie Kelman. I wish them all the luck but so risky.
0
QPR shirt sponsor Football Index in trouble... on 14:31 - Jan 20 with 4337 views
why would you invest your life savings in something that at best, is difficult to understand and lacks transparency and at worst, makes no sense at all?
Never knowingly understood
2
QPR shirt sponsor Football Index in trouble... on 14:21 - Dec 21 with 2819 views
QPR shirt sponsor Football Index in trouble... on 12:57 - Dec 21 by danehoop
why would you invest your life savings in something that at best, is difficult to understand and lacks transparency and at worst, makes no sense at all?
Its bonkers.
There's a good documentary on Netflix currently around the collapse of cryptocurrency exchange Quadriga and what truly happened to its founder. Well worth a watch.
One of the things in the doc is a guy who invested his whole life savings into crypto on this exchange and lost it all. He admits he was greedy because he wanted to be rich like the influencers he saw on social media.
Now, I'm not getting into crypto = good/bad arguments on here but to put your whole life savings into one basket that is inherently high risk, the same as Football Index, is staggeringly bad personal fiscal management. If people want to dabble in these things then its up to you, but to have all of your savings in it...
I've even read stories of people borrowing money to then invest in these schemes.
Proper crazy stuff.
So I do sympathise with anyone who lost money, but Football Index was always very obviously a gambling tool at best, and a Ponzi at worst!
By continuing to use the site, you agree to our use of cookies and to abide by our Terms and Conditions.
