Football Index was launched in 2015 as a licensed and regulated UK gaming platform that allowed its customers to bet on the future success of football players.
Fixed odds betting options have also been offered for the chance to win daily “dividend payouts”.
Thousands of customers across the country have deposited huge sums of money on the platform in recent years, which have been advertised on radio and television.
Football Index is also a shirt sponsor for the Queens Park Rangers and Nottingham Forest Championship clubs.
Players received a warning when registering for the service under its playing rules, which read: “Your money is at risk when you place a bet on the Soccer Index. You can lose your stake. There is no guarantee of winning dividend amount under bets. Stock prices can go down or up. “
However, the “market” collapsed during this week following the announcement of a dividend restructuring – with player value dropping dramatically overnight and the value of some clients’ portfolios dropping by 95%. %, based on who used the service.
In a statement released Thursday, March 11, Football Index acknowledged the “difficult and challenging week” for its players.
The board announced that the platform will be suspended and the administrators have asked to “strive for the best outcome for customers” with the aim of continuing the platform in a restructured form.
The board said: “We are pursuing a restructuring agreement to be agreed with our stakeholders, including, most importantly, our community.
“We are preparing this through administration with Insolvency Practitioners Begbies Traynor, in order to seek the best outcome for clients with the aim of continuing the platform in a restructured form.”
Unfortunately for users, payment transactions including withdrawals were also put on hold after the announcement, leaving customers with no opportunity to withdraw their remaining money from the platform.
An outcry ensued on social media, with many Leeds-based clients shocked by the news.
A man, who wished to remain anonymous, said he deposited his student loan money and salary into the index while at university.
Upon graduation, the Leeds man, 23, replenished his deposits using bonuses and overtime from his job.
In total, the man told YEP he had invested at least £ 4,000 in the Football Index.
Today, in less than a week, the value of his wallet – which peaked at around £ 7,500 – has fallen to less than £ 500.
The man was devastated by the news of the suspension of the platform.
He said he “liked the platform” initially and believed it was “a way to make money from football knowledge and add excitement to games”.
Speaking to YEP, the man said: “I handed over money to college when it came to media and continued to supplement with student loans and informal income.
“I graduated and got a job two years ago and put in extra hours and bonus money.
“In total I had around £ 4,500 of my own money.
“In the beginning, it was all about the media, and whoever got the most took the dividends, the price was determined by media income.
“Then they introduced performance dividends based on the Opta matrix, with the top player in each position earning dividends each day.
“It was a big move and the market exploded.
“My wallet peaked at around £ 7,500.
“Then they started modifying the bet, they tried to make it look more like a stock market, with offers and offers and took out the instant sell feature, which means the prices went down instead of down. ‘to augment.
“Everyone has risen and gone, my wallet value is now just over £ 500.
“I didn’t take any money out because at the prices the players are at now, I don’t think it’s worth it, rather I hope for a resumption of discussions with the administrators.
“I loved the platform. It was a way to make money from the knowledge of football and it added excitement to the games that were originally dead rubbers for me.
“It added more to the games, but by constantly changing investment conditions and payouts, a recovery is not likely, unless new leadership takes matters into their own hands and the platform reverts to it. like before.
“I can’t see it survive long term even if it survives short term, I just hope there will be a future alternative that actually works because it was such a great concept and how good it is. is such a good base now been wasted and some people have lost a lot of money. “
Ben Child, a 19-year-old from Leeds, told YEP he has spent the last 18 months investing money on the platform – with a total deposit value of around £ 2,000.
He said – despite this “looking foolish” – that he was one of the lucky ones, having withdrawn just £ 370 last week.
If he had left the money on the platform, it would now be worth less than £ 100, Ben said.
Ben added: “There are people who lost over £ 100,000 there and had a lot of savings there so it could be worse.
“I only put in a little bit of money that I had set aside and didn’t need when others lost money they were counting on, so I’m sorry for them. “
A Leeds resident also said he had deposited around £ 2,000 on the Football Index over the past two years but managed to get a substantial part of the funds back before last week’s announcement.
Speaking to YEP, he gave an example of how a player’s stock value has declined over the past seven days.
He said: “I used to have around £ 2,000 in Football Index.
“There are some amazing statistics I can share on how player value has completely collapsed.
“A £ 500 investment in Tammy Abraham two years ago was worth around £ 8 last Saturday when I last logged in after the announcement.
“There are similar losses among other players.”
The man said the value of his wallet had fallen by around 95% over the past week.
He added: “The loss percentages are absolutely staggering.
“I actively quit ‘playing’ the game probably about a year ago and withdrew 75% of my money.”
Another Leeds resident said he “felt stupid”.
He added: “I thought the concept of Football Index was great, just a shame about its handling.”
The statement released by Football Index on Thursday March 11 – in its entirety – reads: “Dear Football Index community,
“We understand that it has been a difficult and stimulating week for all of you. After much difficult deliberation, we must now release the following update.
“The board of directors of BetIndex Limited has consulted with external legal and financial advisers, as well as the UK and Jersey gambling commissions. The decision has been taken to suspend the platform.
“The restructuring of the dividend announced on Friday was a necessary step in a business recovery plan to seek the long-term sustainability of the platform. However, it is clear that this has not been well received and we need to find a nicer path.
“We are pursuing a restructuring agreement to be agreed with our stakeholders, including, most importantly, our community. We are preparing this through administration with Insolvency Practitioners Begbies Traynor, to seek the best outcome for clients with the aim of continuing the platform in a restructured form.
“The restructuring could involve distributing BetIndex Limited’s equity to clients, board representation for clients and setting up a new management team, along with other initiatives.
“Until the administrators are in office, the platform will remain suspended and no trading or payment operations, such as deposits and withdrawals, will be possible. Once in office, the administrators will be in contact with customers, creditors and others This intermediate stage of suspension of the platform is simply intended to ensure that everyone’s rights are preserved with regard to funds held by BetIndex Limited.
“We fully understand and anticipate concerns about a temporary suspension of your ability to withdraw existing cash balances and assure you that they will remain held in a separate account which will be managed in conjunction with our advisors, protected by the trust agreements in place and will be subject to review by the directors.
“The board has always looked for the best way to maintain the platform because we believed that a takeover was not only possible but also in the best interests of our clients. This decision is deeply regrettable and constitutes the result which we sought to avoid. restructuring dividends. However, we believe this is the most responsible path for our community given the situation as it has developed.
“The directors will issue a statement upon their formal court appointment, which is expected to take place within the next 10 days and will be able to share further timelines at this point.
“The Board of Directors of BetIndex Limited”
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