QPR shirt sponsor Football Index in trouble... by Ashdown_Ranger 20 Jan 2021 9:43
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:

https://www.theguardian.com/football/2021/jan/16/football-index-clients-money-could-be-trapped-after-drop-in-players-share-price

So, new shirt sponsor next season...??