Lowering divs



  • @FINorth No chance. Nice scaremongering though.

    They’re still making good money on all the IS and they also have commission active on bids.

    Yes they aren’t minting shares and this won’t be sustainable forever. But I’d be amazed if they weren’t buying shares back at these prices and reducing their liability even further.



  • @FINorth said in Lowering divs:

    Anyone think with FI losing money every day they might lower dividends? It would be suicide from their point of view but it could happen

    They just cleaned up massively.

    If you buy a player for £10 from them, then sell him to me for £4, they bank the other £6.

    I say this, because Bruno is now trading at less than £4, he was as high as £11 in July.

    They made serious bank with this crash.

    That said.... With prices like these (and still dropping), the yield on some players could start becoming absolutely mental. For example, Pogba is currently £2, he earns something like £1.50 in MB most years.



  • @Dan-The-Man I've been extremely shocked how confused the userbase has been around these relatively simple economics. This isn't a dig really (although naturally sounds patronising). But the panic around FI's profitability is the strangest aspect to the crash.



  • @GH said in Lowering divs:

    @Dan-The-Man I've been extremely shocked how confused the userbase has been around these relatively simple economics. This isn't a dig really (although naturally sounds patronising). But the panic around FI's profitability is the strangest aspect to the crash.

    I suspect it's partly because for a long time, if the market crashed, it's because people were instant selling back to FI and therefore pulling cash out of their system.

    That's why FI never really let the market crash, until they removed IS. A lot of people still haven't realised that when they made the switch, they put our interests at odds with their own.



  • No chance!

    For every sale there has been since brown Sunday, FI have taken a commission.

    The bigger picture though....

    Suppose somebody paid £10 for Jadon Sancho and then sold him to the market for £6 two weeks later. FI have made a £4 profit plus commission on that one share.

    They've never been so rich.



  • @NewUser67492 surely that £10 went to another customer not FI tho and FI just made 2%/4%



  • @PompeyFc

    FI mint shares at all price points now. Sure, it could be me selling to you, but if I don't want to sell, but you want to buy, FI can just make new shares and sell you them if they think it's in their interest.



  • @Dan-The-Man I’m very confident they haven’t minted a new share in months



  • @PompeyFc said in Lowering divs:

    @Dan-The-Man I’m very confident they haven’t minted a new share in months

    Can you explain your confidence?



  • @Dan-The-Man the only way they mint shares is if no one is willing to sell and that hasn’t been the case for a while



  • @FINorth said in Lowering divs:

    Anyone think with FI losing money every day they might lower dividends? It would be suicide from their point of view but it could happen

    Absolute BS

    They’ve made a fucking killing, they increased divs just to paper over the cracks but guess what that papers fucking come off completely!!!!!!



  • @Dan-The-Man said in Lowering divs:

    @PompeyFc

    FI mint shares at all price points now. Sure, it could be me selling to you, but if I don't want to sell, but you want to buy, FI can just make new shares and sell you them if they think it's in their interest.

    You're saying this a fact but in honesty, it's your theory and it could be correct, but it also could be incorrect



  • @Dav Along with most of the wall and your bedroom



  • @GH said in Lowering divs:

    @Dan-The-Man I've been extremely shocked how confused the userbase has been around these relatively simple economics. This isn't a dig really (although naturally sounds patronising). But the panic around FI's profitability is the strangest aspect to the crash.

    yep

    People getting confused that if there are less IS prices on players it affects FI's bank balance.
    Look at Cherki

    FI selling him at £6
    Are they worried if he can be bought for £2 ? No
    They have that £6 to cover his potential dividends (nil so far) and are earning % on that somewhere...it's not under AC's bed,

    £5 mill in trades yesterday ? all that commission........and Cesc wins star player. I doubt that FI made a loss yesterday.

    Some users seem to think the value of their port affects FI



  • @Munchie63 There's nothing under AC's bed, he sleeps on a 4 metre high waterbed filled with customer's tears



  • @PompeyFc

    No the models changed. Where you used to buy and sell off Football Index, its now trades between traders.

    So my point is somebody would have paid £10 for Sancho (from FI) 12 months ago and then sold to a fellow trader within the last two weeks. FI have made a £4 profit per share on that particular trade minus any payouts for goals, assists etc



  • @Dan-The-Man said in Lowering divs:

    If you buy a player for £10 from them, then sell him to me for £4, they bank the other £6.

    Now that FI don't have the Sell Now liability, don't they bank £10. As long as the £10 plus commission exceeds dividends, FI are £'s in. When the 3 year expiry comes in that will limit their liability further.



  • @NewUser395079 said in Lowering divs:

    @Dav Along with most of the wall and your bedroom

    Yes mate same as your whole house

    Cracks everywhere



  • @FINorth said in Lowering divs:

    Anyone think with FI losing money every day they might lower dividends? It would be suicide from their point of view but it could happen

    I don't think so.

    Like you say it would be suicide. Regardless of the terms of conditions, they would be directly changing the bet negatively. I think punters would have a strong case for getting the bet voided . Not great for anyone in profit but anyone in the red should go to the regulators.

    Whilst they have cocked up order books, they haven't changed the bet you made. The problems so far have been down to incompetence ultimately FI haven't screwed anyone over- they've just made a mess of the mechanics. That changes if they lowered dividends.



  • People are right that they've made huge sums of money through minting new shares and their cash balance is very high right now.

    However, they aren't minting many shares at the moment and, at 2% commission they were earning less than they were paying out. The 4% commission that they'll generally be getting is paying for the dividends with some profit.

    Ultimately, we need people to start putting money in again, but that won't happen until we hit the bottom and stabilisation for a period of time. Then people won't automatically think that they'll be losing money on whatever they spend.


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