New Dividend Structure

First things first, what’s the update?

Yesterday (Thursday 9th July), a host of new updates came out which you can find here. They included new dividend categories, different times of pay-outs and deadlines, and increased dividend payouts. There were two key additions in the Dividend Review, in addition to an increase in Silver and Gold Matchday Dividends.

1. GK have their own dividend category.

The market has long anticipated this, and it’s finally come into play. Goalkeepers are now separated from Defenders. This has two consequences. Firstly, the demand for Goalkeepers has risen on the basis that they are not competing for PB with defenders, hence they have become more valuable as their likelihood of winning dividends has increased. Secondly, the backhand of this, Defenders now don’t compete with Goalkeepers. This second point is perhaps a minor consequence, but it is nonetheless worth considering that the pool of dividends that goalkeepers had been winning whilst in the Defender category is now entirely open to the actual defenders on the index. This update is pretty self explanatory - see the dividend table below to learn how much GKs can win in PB.

2. Team of The Month (TOTM)

A new dividend type altogether has been introduced. We now have;

- PB Matchday Dividends

- Media Dividends

- In-Play Dividends (for the first 30 days of investment)

- Team of the Month Dividends

Every month, the top-performing PB players will be credited with the respective dividends shown below. The rating is comprised of the three best matchday scores that player has produced over the course of the month. For example, if a player scores 250, 220, 200, 150 their total score would be 670 (the sum of the top 3 ratings). The best GK, 3 Defenders, 4 Midfielders and 3 Forwards earn the following dividends:

Team of The Month | Football Index

For more information on how the TOTM works, we highly recommend you check out Football Index’s website (click here) to read up on all changes and rules. Knowing how to win is a crucial part of trading that shouldn't be undermined.

The third aspect of the Dividend review is not new, but is as equally as important. The matchday dividends available have increased, as well as a rise of £0.01 for First Place on a media day. Here's the new dividend table.

What does the New Dividend Structure mean?

Football Index has produced another fantastic update to the ever-growing platform to further increase the profitability available to traders. Some traders are unhappy with how small the increase in dividends are, though ultimately it is still making every dividend-winning investment more profitable. With increasing Market Buy values, particularly in the wonderkid arena, the market was screaming out for a little more traction to reward the very best PB players at the top of their game and reiterate why the players in the top end of the market are worth investing in.

First and foremost, your PB winners are now a greater asset to you.

If you hold an established PB winner, who posts great PB scores regularly, you can win more money going forward. That’s not to say your chances of winning matchdays are greater, but the amount you’ll win is greater. On top of that, the new Team Of The Month dividend rewards consistently high PB players. So even if your player (i.e. Kimmich) can't post a peak PB to win a matchday, but he posts high scores regularly he'll pay dividends via TOTM. You’ll therefore be able to reap more winnings for your heftier investment in the established superstars on the market such as Messi, Neymar and Trent Alexander-Arnold.

In the long run, it helps identify true market value, justifies expensive players and will tighten the spreads in the top end of the market.

Proven PB winners will now win more in dividends – assuming they’ll be continuing their form. This means that some of the best PB players on the market will have a greater demand, therefore more buyers in the market. With more buyers and more bids, Buy Price and Instant Sell Price are both higher and tighter.

Oddly, some Top PB players have dropped in price in the last 24h, such as TAA. This is an unusual dynamic, though most likely occurring because traders had anticipated a greater increase in Matchday PB than what has actually occurred. In a few weeks, we'll hopefully see a better reflection of True Market Value. Young dividend winners near the top, followed by older dividend winners and wonderkids, then the younger squad players followed by old squad players. This will also make it easier for new traders to understand what justifies the Top 200 being valued as they are.

What about the lower end of the market?

Although the hype is mostly pinning on the superstars, particularly Neymar and Bruno Fernandes, this announcement can still mean good things for the tail-end of the market. First, let's get the negatives out of the way. It is frustrating to endure this period with the inability to cashout an Instant Sell without taking a loss. Selling players that have low demand is increasingly difficult due to the Matching Engine (ME). This update has further shifted focus to the higher end of the market to reap from the new PB dividend structure. Alas the depths of the index are drowning with low instant sell players and very little activity outside of Goal Keepers. The spreads in the players below £2 speak volumes.

But let's look at the positives here. A Gold Matchday Star Player will take home £0.10 for TOP POSITION plus another £0.10 for STAR PLAYER. For a £10 player, it’s only a total of 2% of their market value. A lad down in the squad players list that has had the odd star player (Teji Savanier for example, £1.56 Market Value) could recoup 12% of their market value in just one performance. That win would almost inevitably drive up demand, meaning a tasty rise in value or tighter spread to go alongside your portion of dividends.

For those that are ignorant to the lower end of the market and believe this an unfeasible investment opportunity, remember that Josip Ilicic was £0.61 in market value 12 months ago and has since earned £0.52 in dividends. He’s almost paid for himself in under a season. You don’t get that sort of value at the top end of the market. Had the new dividend structure been in place 12 months ago, Ilicic would have won £0.63 in dividends this year. That's right - he'd have repaid the total investment in matchday dividends alone in just one season, before capital appreciation or IPDs are factored in. So the new dividend structure certainly can benefit any lad in the bottom end of the market who can start to perform at a PB level in coming months! It just takes patience for investments in the lower end until any demand rises.

If you've any questions, we're always happy to answer, though we would more than likely send you to Football Index themselves as their website has a solid FAQ sheet and crystal-clear explanations of the dividend structure.

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