£20 player



  • I can see a rise in dividends before a share split as it's more cost effective for FI mathematically speaking. This will only happen if the number of active users keeps rising though as the commission's are what will pay for these dividends. A share split could be too expensive without a big investment coming from somewhere.



  • A share split doesnt cost FI anything ...



  • @mike778 initially yes, but imagine they halved all the prices just now and doubles your shares. Because of the dividend payouts the prices would eventually rise back to where they are but everyone would have double the futures which FI would have to pay dividends on. And then when the prices inevitably rise again everyone's doubled their money by sitting right, instant sell half of them for cash and you're on the same as you had before, it would cost them money over time. Like I said, basic maths.



  • @John-Renwick *sitting tight



  • @John-Renwick on the last share split the dividends were halved. Hard to do this with the current price structure.



  • @Ozzlebert I agree. That's why I'm saying a dividend increase is the most likely option (in my opinion) can't see it happening anytime soon tho.



  • I can see a million users of this site but the end of the year so I think prices alround will double



  • @John-Renwick said in £20 player:

    @mike778 initially yes, but imagine they halved all the prices just now and doubles your shares. Because of the dividend payouts the prices would eventually rise back to where they are but everyone would have double the futures which FI would have to pay dividends on. And then when the prices inevitably rise again everyone's doubled their money by sitting right, instant sell half of them for cash and you're on the same as you had before, it would cost them money over time. Like I said, basic maths.

    No.

    The dividend payouts would be split as well so media is 2.5p a day.

    It wouldnt cost FI anything just not sure what they would do with the decimals.



  • @NewUser137359 said in £20 player:

    I can see a million users of this site but the end of the year so I think prices alround will double

    It depends on dividend increases though as there is a set return.

    If prices double then a 10pc ROI becomes a 5pc ROI so people are less likely to buy causing a drop.



  • During one of the FI meetings Adam Cole was asked about both an increase in dividends (he specifically said they were very generous as it stands which I must agree with) and a share split (he did not rule it out however they need to work out the cost of rounding up players prices and the 5p MB as 0.5p don’t make much sense)



  • Player value is capped by dividend return, it has to be. The but price that this cap sits at is uncertain, although applying logic and a bit of maths can give us an idea. IMO the media dividends will set the cap rather than PB. Does anyone else agree that a change to PB would have to take place in the close season?



  • @Ermejo - also agree with you and Adam Cole that the current dividends are currently generous. The yields achieved by the big players is driving the market upwards and long may it continue! Where do you see the 'soft cap' for MB i.e. The share price at which 5p return no longer represents much value, leading to a slow down at the top?



  • @John-Renwick hmm I'm not sure about this. I think when the time comes to do something the choice will be either a share split or increase dividends. Now if they double dividends the financial cost is the same as the dividends. However, I believe double dividends would lead to a long steady growth. Conversely if you share split but keep dividends flat you'll have people pumping in money till neymar back near £9+ within a month the inflation would be insane and FI would be able to use this to get loads more interest for new users.

    As I've said previously not sure which way they'd go but don't think it's as but and dry as you say. Do agree it's a long long way off though



  • @Pierrey2129 completly agree, also can't see them reducing any dividends without replacing it with something else as they would be changing the terms while bets are live.

    That's fine if it benefits the users but the other way and there could be issues. It's covered in the terms but would leave a bitter taste for some. Personally I'm happy. I have trust and even if it gets harder to make money it's still better than an ISA or savings account.



  • @Pierrey2129
    Well, it all depends on expectations, ROI returns of media buzz are incredibly attractive imho, even a £10 player offer a 0.5% return per MB, may not sound spectacular but those players do tend to win a few in a year, let’s say 15-20? Even if 15 that’s a 7.5% ROI of clean dividends with no commissions
    The above offcourse is based on a £10 player (most are still below that mark, Pogba at £6 for example) and does not take into account any price appreciation likely to come with the index growing
    Try to pop in at any bank asking for a 7.5% interest account and see what they say ;)



  • @Ozzlebert
    They will not reduce them for sure (terms and conditions as you mentioned), just don’t think they will increase them any time soon, they may do so in a distant future (not before the next year) however if and when they do it will be an added bonus to the currently already attractive conditions



  • And I know people say about a cap but for me this site is about investing in up and coming talent trusting instinct and sitting on them and if you can afford to top the top ten players for double they are now they will sell supply and demand so I can easily see this site at least double maybe treble If it gets into China



  • @Ermejo - I'm thinking around £18 or so myself so on the same lines. During Media Madness Pogba returned 39p in two weeks (bloody insane yield on that). At £15, £17.50 and £20 that's a yield of 2.6%, 2.2% and 1.95%. Those are still fantastic returns for two weeks work so perhaps the soft cap is even higher. That said we've been spoilt here and traders will expect more. Equally you'd like to think that FI could afford to increase MB a pence or two once we get to that stage. Certainly an interesting topic!



  • @Pierrey2129 certainly an intertesting topic and some well thought out logic. Only issue I see is that FOMO always seams to trump logic on FI!



  • @Jay-Frazz the dividends will have to go up in line with players prices. Why would people buy Neymar for £20 if he returns only £4 a year in Buzz. That means he will take 5 years worth of dividends just for you to breakeven on your money without making any profit. Pointless for those who look ahead.


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