It's all change in Football Index this year. The ME (matching engine) early release through the Covid-Crash. Followed by a new dividend structure, delayed release of Part 2 in the ME and the staggered reintroduction of football has made the index somehow seem both volatile and entirely stagnant. Nothing that liquidity can't solve though...
Football Index is more than aware of trader's troubles right now. The platform is crying out for more reason to purchase players and stimulate trading to get the market moving. But with terrible spreads, the offseason looked set for a 'hold tight' mentality and perhaps a small prayer that the release of ME pt. 2 and the introduction of Liquidity Providers (market movers) would solve issues that many new and experienced traders are facing.
The new dividend structure release saw money lumped into the Goalkeepers. There wasn't much movement in the mid-range, and the high end of the market actually buckled off it's throne. It seemed traders had over anticipated the dividend announcement, expecting at least 50% dividend increases across the board. When it came out TOTM, a comical faceplant followed and only GKs saw any real short term benefit.
Having traded on FI since early 2018, it's been a consistent rise in most holds, whilst the IS has usually been a breakeven or profitable cashout. The state of the platform this summer is an entirely different market to how it used to be. But it's not worth moaning that 'easy-money' is no longer no the table. It's a cautious time on the index. And with caution comes hesitancy. Hesitancy to deposit. Hesitancy to purchase. Hesitancy to trade on Football Index.
Hesitancy is not going to help the index over the offseason - and it's by no means up to traders to resolve that. We needed more reason to put money down and believe that we can walk away with a profit. FI know it. And, after a few hours of reviewing their bonuses in the coming weeks, we think they've done an excellent job of ensuring the market ticks over.
So - what bonuses are on the cards?
5 x IPD | Until 30/09/20
Does what it says on the tin. The 5 x IPD is an arm around the shoulder when you're considering an investment across the board. A keeper's clean sheet gives you 5p per share (the same amount as their TOTM!). A goal gives you 5p/10p per share depending on position. An assist gives you 5p per share.
If you're eyeing up a more expensive player to invest in, the IPD bonus is the sugar-sprinkles to consider if now is the good time, with UCL fixtures on the horizon, or the return of the French Ligue 1. A hard-hitting scorer could easily pay out 50p in dividends in a 30 day timeframe across upcoming fixtures.
If you're eyeing up a low-end budget investment, IPDs could now be a real deal breaker. An assist and goal could yield 10-20% ROI for a sub £1 player. The likes of Atalanta, who are gung-ho on the attack still have Serie A and Champions League fixtures to play. The next 30 days could genuinely return half decent dividends on those players.
The IPD side of FI has always been an afterthought. Media, Matchdays and Capital Appreciation are the realistic moneymakers. But short term investing needed a kickstart, and FI have given an impressive incentive to onboard players that you were already thinking about buying, and making them far more attractive in the short term.
It doesn't excuse short-sighted investments. If you ever buy a player purely for IPDs you're trading with a highly risky strategy. You still need to consider what happens AFTER the 30 day IPD deadline.
But if you thought Dybala was a nice looking purchase after the dividend review and introduction of TOTM, the 5 x IPD bonus is something that could certainly edge you into purchasing over the coming week rather than holding off through the offseason.
Reduce hesitancy, fear and barriers to investment. Increase liquidity.
Summer Media Madness | Until 11/09/20
If you were worried that the top-end media winners could tremble through the offseason because the new dividend structure didn't favour them, you were not alone. The dividend review didn't do all that much from a media perspective, and the thought of the top end stagnating over summer could have meant real issues for every trader on the index.
So FI have introduced a total media dividend boost of 60%.
They'll be paying out 5 places for Media Days from today, 24th July, until 23rd August.
They'll then be paying out 5 places EVERY DAY from 23rd August until 11th September. That's including all matchdays.
Let's just appreciate how much they are trying to reward investments with promotions that did not exist when you bought the shares in the first place. Last year they boosted media by 33%, this year it's 60%. It's not only giving incentive to purchase shares and improve the market capital, but it's rewarding the traders that have granted the platform patience whilst they try to improve for the better.
Make it Gold
Every European matchday in August is gold, regardless of round. This makes 4 more Gold days. A total of 16 Gold matchdays in 19 days - where many of those days are just one or two fixtures! It's a HUGE potential dividend payout for your star players.
This is a tasty bonus that many traders have completely undervalued upon the announcement of the summer bonuses.
It's not just a short term gimmick, but a genuine incentive to put money down on a long term PB performer. It should really boost the top-end players who have a proven PB record. There's a great chance that a European PB player will win TOP POS and STAR PLAYER to pick up £0.18. Then the IPDs if they bag a couple of goals/cleansheets - let's say £0.28. Plus a media chance should it be a deciding factor in UCL or Europa League. 'Make it Gold' is giving the best European players an opportunity to take home at least £0.30 in dividends over August. Some players may even hit £0.50+ in dividends should they hit Star Player/ Top POS a couple of times and bag the IPDs.
5 x £10K Cashdrops
If there wasn't enough reason to consider putting money down and seeing where it takes you over the summer, then the cashdrops every Friday for the next 5 weeks (starting 31/07/20) are a home run. Nobody ever expects to win them. But you only need to deposit and purchase £10 of shares to enter, which is highly tempting considering the other summer bonuses.
First prize is £5k, then £2k and £1k. There are also 4 places for a cheeky £500 too. That's running every week. The chances aren't that terrible, and the real reason for investing is all of the other bonuses and the long-term profitability available in the world's first football Stockmarket. You wouldn't say no if you won it.
At a time where liquidity is vital to shift the market northbound, Football Index has actually listened hard to the market needs and offered a host of rewards across all corners of the index.
The IPDs could inject money into the low end of the market who still have games to play - and in the first few games of next season given it runs until the end of September. The Media Madness should help stabilise the boys in the Top 200 that feature regularly. Make it Gold will give an injection of dividends to many traders in the market, which will almost inevitably be reinvested in more shares. Then a nifty cash drop every week should see some activity every Friday through the offseason.
It's not enough to fix the terrible spreads or stop traders low-balling offers. But it's enough to inject cash into the market that will mostly be reinvested. Most importantly, it buys the index time. We cannot seriously moan at what's on offer here. Plenty of European players and media successes will win more dividends in the next month than they did all season.
It should keep us quiet, but the market ticking over, until they've got Phase 2 of the ME out and the new season gets underway.