Where's the Dividend Increase?

  • Continuing this from a comment I made in another post as I feel it deserves attention.

    I think as traders we have the right to ask what price this added liquidity has cost us all?

    How far have FI been able to move the goalposts for us still to feel grateful for finally being able to access our money in FI.

    Yes I do realise it's a bet, however, they try to dress it up!

    Is our port value worth the paper it's written on?
    The purchases I made in good faith 6 months ago on the basis of it being a 3 year bet have the potential to suddenly be rendered worthless with FI 'new direction'.

    Is it even a 3 year bet anymore?

    I don't think we've even seen the worst element of the matching engine
    The part where a top player receives a career ending injury. It will be carnage.

    I'm just playing devil's advocate here and recognising that this seems a mighty good deal for FI.

    I expect in return a dividend increase from their side to balance the 'risk versus reward' element.

    Thoughts please fellow gamblers.

  • @Dronny-Gaz said in Where's the Dividend Increase?:

    The part where a top player receives a career ending injury. It will be carnage.

    Do you not think FI would've disabled IS on that player should they have had it available in the first place? It would surely be fastest finger first, same now as it was before.

    FI will mostly increase Divs when it is safe to do so.

    I would also like to point out to anyone having issues with the matching engine it is still only partly complete, I would imagine sell orders will be in place before the commission free period ends. I would not be surprised if FI did in fact bring back IS in some form once sell orders are in place for some players.

  • There is a yearly dividend review, expect it to come then.

    Given their liabilities have reduced, agree some of this should be shared.

    But yes it is a 3 year bet still. The value of the bet is identical to what it was before its just the house won't buy back bad bets off you.

  • So we're to wait until FI says it's safe enough for an increase in dividends to balance the added risk we've taken on and the zero liabilities they suddenly have with no IS to cover?

    We should hang fire though, because they might reintroduce some sort of IS function at some point, or they might not.

    I'm just asking the questions all traders should be asking.

  • @mike778
    Is it Mike?

  • @Dronny-Gaz said in Where's the Dividend Increase?:

    Is it Mike?

    Is what?

  • @mike778


  • @Dronny-Gaz im hoping come the annual dividend review in August there will be some decent increases to dividends. I know many may feel the review is off the table due to current events but they based the review on growth and looking a t the Footie id say we have easily had enough growth and now with trading activity through the roof and extra commission on the horizon for FI i see no reason they wont offer us higher dividends again for next season

    They will want to stay ahead of demands from traders and wont want to be forced into doing one if the market goes flat

  • Hmm

    Maybe they need to keep quiet about that. Doesn't that mean they are in danger of losing the gambling tab.

    Still best to assume you need to sell in 3 years when making buys though.

  • @Black-wolf
    Thanks for your balanced reply.

    Do you think it should be an appropriate increase which recognises our added risk, whilst also recognising that FI no longer has the financial burden of fulfilling IS orders?

  • Would not be of any surprise to me once the PL is confirmed that they run a boosted PB for the rest of the 19/20 season, this will almost be a bridging point between now and the annual dividend review in August.

    Bare in mind the media dividend boost ends in a few days, back down to paying the top 3 places

  • I don't want this turning into a blindly defending FI because we're making money from it thread.
    Anyone who speaks out needs silencing quick! 😁
    I feel we should use the forum so FI can guage gamblers opinions.

  • @Dronny-Gaz

    Anyone who does not understand thousands of businesses are going to go out of business because of the pandemic and does not trust the FI management to do what is best for the company i.e increasing dividends when they think it is safe to do so, should question why they are on FI in the first place, FI will need cash reserves as will any business coming through this and whilst gambling companies normally thrive during recessions they still need to be smart. I think everyone on FI trusts the management or why would you have money in FI in the first place?

    The first thing i look at when backing a company is the management, bad management will kill a business very quickly.

    I understand the point you are making but it is not a normal situation, was it a good call to remove IS just before most likely the worst recession in living memory, who knows but what is done is done. The people who needed to cash out have now most likely done so. IS being gone protects FI more which is better in the long run for everyone who has money in the platform, does anyone know what FI's books actually look like other than FI?

    Investing in FI the platform is the same as investing in FI the business to a degree and if you look at what most businesses have done recently it is cut dividends to make sure they survive, FI removing IS could be FI's take on preserving the company, without having full access to FI's books we can not make the judgement on if it would be safe to increase dividends so we have to trust the management to do that.

  • @Brad And presumably only one on match days.

  • @London-Is-Blue
    You've done the old 'if you're not happy take your money elsewhere' thing!
    But what if everyone isn't happy? What happens to FI then?
    I am happy actually. Still doing OK, but I just feel FI need to offer more to balance up what they've taken away.

  • @Dronny-Gaz
    I have tried not to do that, I tried to explain why FI removing IS and increasing commission looks to me as an investor in other businesses that they are looking to preserve the future of the company similar to a FTSE 100 company suspending or cutting their current dividend output so they can get through the pandemic and to not trust the management through a time of turbulence as in investor your options are to jump ship or to trust in the management to make the right decisions and to increase dividends when the time is right, when the cash is there.

    Look at the airlines that are begging for government money because they did share buybacks and paid dividends instead of focusing on a strong balance sheet. IS is FI buying back shares and increasing dividends when they are not in a financial position to do so would be exactly the same as what the airlines did and if a downturn was to hit FI they would then need bailing out, No one would bail FI out and everyone's entire stake would be gone.

  • @London-Is-Blue
    You're not an investor.
    You are a gambler placing a bet on a gambling site and as such, surely you want the best odds.
    Definitely worth remembering.

    Calling it investments and portfolios and talking of ROI sounds very grand.

    I'm saying these things for you and me and him and all traders.

    I'm basically like Martin Luther King meets that kid who stood in front of that tank meets Mother Theresa.

    You will all get what I'm saying eventually. Some quicker than others.

    It's good for the index honestly!

  • While I completely understand your concerns and frustration I think it’s unfair to place all of the blame on FI’s door. Rember we are in a global pandemic. In my opinion FI have done a reasonably good job of protecting our bets/investments at a time of extreme uncertainty when the arse fell out of the stock market. To be fair I think the current level of liquidity is more reflective of the global economy and not just this specific platform.

    From my experience and in my opinion:

    Will the lower end be more difficult to exit in the short term? Yes

    Is it impossible to do so? No I’ve seen various examples in my own port of players trading at MS in the sub 50p sector.

    Would we be in the same reduced liquidity position without covid-19? Absolutely not

    Do I expect liquidity to improve and current prices to be maintained when football returns and the pandemic eventually subsides? Yes

    That last point means that rather than worrying about what my port is worth today, I’m using this situation as an opportunity to pick up players through the ME well below MS with the intention of holding long term and exiting at a profit. Of course everyone’s situation is defferent and there cannot be on perscribed strategy for all but there is opportunity created by any market situation.

    One last point - it is my opinion that there will be an IS exit point for the vast majority of players on the platform at some point in the future. Without wanting to any attribute blame to traders, if you hold a player for 3 years (and I’m aware shares aren’t expiring at present) and at no point during this period is the IS function available then I’d question the reasoning behind the purchase.

  • @MikeWagner

    Good points.

    It wasn't so much frustration as playing 'devils advocate'.

    I feel I've taken advantage of other traders misfortune as much as anyone. 😁


    If you don't ask you don't get!
    If you demand, you might just get!

  • @Dronny-Gaz

    My entire point was why FI have made good decisions to weather the pandemic as a company. You said why should we wait because we have added risk., why should FI risk the entire company increasing dividends when it may not be financially viable to do so? You trust the management to make the right call and increase dividends when the time is right once they know they can survive what might happen. Strong balance sheets are what will see companies through and to do that they have to de-risk.

    You are betting on your individual players but you are investing in FI, not directly but you are hoping they grow and increase the market as that is where the real profit has and always will come from.

    'put (money) into financial schemes, shares, property, or a commercial venture with the expectation of achieving a profit.' that is the definition of investing. Every investment is a gamble and yes FI have put more risk on us and less on them but that will result in more reward for us long term.

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