Football Index Customer’s Anger Over Dividend Slash
Customer of Football Index have expressed their outrage after the company slashed the dividends it would pay. Last Friday, they announced they were giving 28 days notice of the changes, which will significantly lower payout rates.
Customers who use Football Index have expressed their anger after the company gave notice of a change in their terms & conditions, which would mean significantly lower payments.
The company offer a stock market type environment, and customers can buy or sell shares in football players, which can rise or fall in value. Owners of shares of players receive dividends, which are based on the player’s performance on the pitch. A players stock can also be affected by how much interest they attract in traditional media such as television and newspapers. A player’s stock value can also be influenced by a new-wave medium such as Facebook and Instagram.
As there is an element of risk involved in the buying and selling of shares, these trades are classed as a form of gambling. Therefore, the company is licenced and regulated by the UK regulator, the Gambling Commission. Last week, the company, in a move that they described was needed to “ensure the long-term sustainability” of the platform, announced they were cutting the dividends. While previously dividends could payout up to a maximum of 14p a share, the new changes meant dividends were mainly between 1p and 2p. The company also placed an embargo on the trading of shares, with customers unable to make changes until 7 am on Saturday morning, preventing a day of trading.
As a result, the value of player’s shares nosedived, wiping out thousands of potential profit in customer’s accounts.
Industry insider Julian Rogers, who writes for trade publication EGR, explained: “For instance, Manchester United playmaker Bruno Fernandes was worth £7.20 per share before Friday’s announcement. At the time of writing, he is worth just £1.36.”
Rogers also cited the example of Jadon Sancho. The Englishman who plays for Borussia Dortmund was at the centre of a tug-of-war transfer battle between his parent club and Manchester United. The 20-year-old’s shares were valued at £15 last year. When interest cooled, and with poor form, they dropped to £7 in February. His current value is just £1.12.
Customers of Football Index took to social media to share the impact that the company’s decision had had on them. One Twitter user by the name Si_Fi posted: “To say I feel sick is an understatement…my life savings up in smoke, how can they get away with this”. The poster shared a screenshot of his portfolio that showed a portfolio benchmark of £26,815.22, down from a high position of £116,345.24, a drop of 75.71%. His screenshot shows a drop in 24 hours of 44.45% and a seven-day fall of 77.02%.
The company’s website, which displays Trust Pilot reviews, shows they currently have a 2.0 rating after 2,359 reviews, with almost all new comments rating the company with one star.
The latest review read, ‘Stay clear of football index’, continuing:
Please do not put any money into this company you will most likely end up like many of us before you. Terms heavily weighted to the house, which can be amended every 30 days as they see fit. – Chris, Trust Pilot Reviewer
Some of Football Index’s customers have questioned whether the slashing of dividends is legal and have stated their intention of complaining to the UK Gambling Commission.
Football Index has responded to the many complaints stating:
“While we take the concerns of our customers very seriously, we want to stress that 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.”