Football Index - Possible alternative way of making money

I know I've been hammering on at this point but it's not like S&S at all. When you own part of a company, the company can grow and increase in value without shares being traded - the company can generate profit itself and increase turnover. Shareholders can get more out than they put in without other shareholders loosing out, simply by owning a company that grows and makes more money.

In this case your return isn't tied to the player (who can also increase in value without being traded). To get more out than you put in, the money must come from other gamblers rather than the 'underlying' which you don't own and which the bet is not fully representative of. Subtract from that the margins of the platform and there is less available to withdraw than has been deposited. Overall, a loss must be incurred across all gamblers for this to be a sustainable business model.

Contrast to S&S where there is an additional source of money - that from the underlying which has revenue of it's own that can grow.

I would like to know how anyone elses maths stacks up - money in is only from gamblers deposits, the platform takes its share, without another source of income what is left for the gamblers to withdraw must be less than what they deposit?

Mike you are only partly correct; FI earn money by charging 2% on all sales traded (there is also a spread for instant sell but players can also be market traded directly between investors) they then pay daily dividends for performance & media so money can be earned in the same way as dividends on S&S but paid daily instead of twice/year. So turnover generates revenue for FI & some of this is fed back to investors, any futures are therefore valued for their potential future dividend flow as well as capital growth potential, so whilst technically all money does come from gamblers but the fact that the market is growing for the foreseeable future makes it a self sustaining income model. There will clearly be some losers in the same way there is with S&S & should football suddenly be banned or go out of fashion or FI get closed down via regulation or management incompetence there will be large/complete losses but as with all investments there are risks attached.

To illustrate from an investors point of view; I bought Pogba @720/future & he has returned £1.41/future in dividends so far & his price is currently £14.50, so I have had a near 20% yield in 2 months but could now also sell for over 100% capital return as well. Can his price be sustained? Well yes if his dividend income remains at recent levels to support it, as 70p/month equates to 5% return on capital monthly but of course that's an uncertain prospect. At the end of the day if you prefer the security of S&S for an uncertain say 10-20% return p.a. great. If you like a bit of extra risk & are willing to back your football judgement there is plenty of money to be made on FI - Will it last forever? Probably not but I see another couple of years longevity at least, so I am going to indulge myself, but if it's not for you then I fully respect that. I certainly wouldn't want to force you to make some easy money

Thought I'd give this a bump - been almost a year since I posted this. (I also notice several of the posts that were critical of the concept and what I was advising have been mysteriously deleted),lol.

The market has more than doubled (Footsie was at 22,000 when i first posted, 11 months later it is now almost 100,000), dividends have increased recently providing even more value and share split has taken place to make it more affordable to get involved. They have just agreed to sponsor Nottingham Forest (upgraded from Bristol Rovers). Trader numbers are through the roof and they are offering a 10% cash back on money invested up until the end of this month (£20k max qualifies for bonus, so £2k return).

If you had followed my suggestions last year then you will have easily doubled your money!

The buyer of last resort is the platform. You can sell to market or you can sell back to FI (Instantly) for a slight premium. The market has 300,000 signed up traders now, so activity/liquidity is much better than it was last year.

I do know that if anybody had put money in and followed my advice with a diverse portfolio they would comfortably have doubled their money, if they knew what they were doing they could have easily trebled their money in 12 months.

Will it always be like that? No of course not, but I was correct and got dogs abuse for pointing out this opportunity (much deleted now).

I still expect good profit this forthcoming year but not the same levels. So I'm not encouraging anybody to spend what they can't afford to lose, but there is still gold in those mines.

How long is a piece of string? I said earlier in this thread that I'm not talking long term, I'm talking 6-18 months.

I do know that I have money sitting in Lendy that I'll likely never see again and likewise with several others. There are risks everywhere - Football Index isn't perfect and it isn't for everyone. BUT if you had jumped on board when I posted last year you would have made a serious return on investment and could exit with ease right now if you wanted to.

I'ts a missed opportunity for many people, but there is still room for ample growth in the product (expansion overseas as well) - so if you want to make good returns for relatively low risk it might be worth exploring. Especially as they have a 10% deposit bonus offer on for the next 2 weeks.

Presumably not if you picked players that tanked, surely not everything goes up?