Stay with me...
They're obviously losing money rapido to pull this trick so quickly.
If they announced as much and stated things were going great, but covid hit hard, and the company being relatively new, it was unable to overcome unprecedented setbacks. As a result they are suspending all dividends for 2 months, but at the same time set out exactly what will be in place on resumption.
This gives people time to rejig portfolios and FI time to bank some commission. During this time a significant promotion push will take place to drive up numbers which will make the platform sustainable.
It gives time to sort out the admin stuff like getting players at the right clubs and being a bit more professional.
Also they sort out timestamping of bets. And from that point 3 year bets come into play and at the end of that period, any player 33+ years old will be wiped from the platform and any shares remaining lost. Getting rid of players at this age, regardless of how good they still are will allow more IPO's to be released, all within 2 weeks of making their debut in a league match.
They will guarantee that under no circumstances, there will be no changes to dividends without 6 months prior notice
Are you buying in?
I'm expecting pelters but I've got my hard hat on 😂
I really do think they need to come up with something to get rid of a few players. They need to set a number of players and only ipo someone when they get rid of another.
@Daly3174 Someone with more time on their hands than me could do the stats, but having a cut off age that wipes off roughly the same amount of players that make their debuts each year will do that.
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@Daly3174 they could give everyone money back as credit for holds that have had no offers for over 1 month, they do need to weed out some of the shit on there
I don't have the answers of how they would do it but I'm sure that's why people get paid the big bucks.
I like the idea of a refund on players that havnt had a bid in so long. They could make it so the refund is spend on other players so the moneys not leaving the index and will still get them 2%.
I think they should have suspended the market for 24 hours to let the news sink in and give everyone an equal chance to react. I had a busy day at work and didn't log in until the evening by which time the damage was done.
It would have suited me if they opened the market and announced at 1am as I would have been first to know. If you snooze you lose as the saying goes.
On the plus side losses aren't as bad as I thought. It has probably wiped 30% of my portfolio - it's hard to tell because I value at cost price rather than mid price so my estimates of portfolio were very conservative before the crash. Fortunately, my portfolio was 50% deposits and 50% deposits, so should still have some profit left.
Sold a lot of my low cost players at very low prices as I'd rather get something today that nothing in a few weeks time. Still a few to go, but main decision is whether to sell premium players and get out or just let them sit there for 3 years.
@Honeylight I was in the same boat in regards to being at work.
My question here though is if they did away with dividends for 2 months, allowing them to sort all their shit. Kinda like a reset. Big banner across the front page with a kick off time for March 1st for example. Would you stick around and see it as an admission they fucked up but going for a brand new dawn, or would people just up and leave?
@Bamford-s-Armpit It would have been better than what they did, but it would be too late now as I've already sold a lot of shares at a loss.
The problem with anything they do is that the market will react to the announcement before the implementation. A few months notice would have been better, but you would still get a reaction. Keeping IPD until the end of the season would have been fairer, but I'm guessing that they can't afford to.
If they can afford IPD, but they think the new system is better they could have given more notice and done the fair thing. The sudden announcement suggest that they had no choice or just don't care.
Certain traders think there is a certain way the game should be played, ie. 3 year bet for MB/PB. FI clearly agree and have closed down the other way of playing the game.
FI advertised and encouraged traditional gamblers in because they wanted their money, but FI don't want the short term style of gambling.
FI obviously want money flowing in and staying in. With a regular bet, you deposit your money and either lose or withdraw you winnings and then start again the next day. FI seems to work when people deposit and rarely withdraw. Dividends are reinvested in the platform and it grows.
Also with a traditional bookie, you win some you lose some. With FI, every wins for a few months and then the market crashes and all your losses come at once.
Several traders will tell you that you only lose if you sell, but it is equally true that you only win if you withdraw. Constantly reinvesting grows your portfolio on paper, but you eventually need an exit strategy.
The risk is that as you deposit more cash or reinvest your dividends you become more deeply committed to FI and risk getting locked in.
So far each small crash has recovered. That might keep happening or it might all come crashing down. Personally, I'm not comfortable with that risk.
I've selling heavily and have got 60% of my deposit back, I might feel differently about the risk if I am only playing with profit (like many other traders are). For now focus is on getting the remaining 40% deposit out. I could do that instantly by selling my premium holds at a small loss, but currently selling the former IPD players while I can.
One thing is sure - I will never make another deposit and will only play with profits if at all.
@Bamford-s-Armpit i cant see some of the big accounts being happy with this idea
who wants 100K + tied up for 2 months not doing fuck all answer is nobody
we all know its the big 100K plus accounts that are currently dictating to management what they want and how they want it done , rumours of big accounts wanting IPD removed started around 3 weeks ago on twitter all of a sudden FI announce IPD's are going
this platform has an absolute plethora of problems , the product at its core is flawed the management are way way out of their depth and have been for quite some time , half the userbase has run a mile , the other half are are either stuck with dead holds or people who somehow believe FI will be able to come out of this smelling of roses
problem is the product doesn't have infinite appeal ..... customers need to be interested in football and gambling vast sums of money on odds that change on a monthly basis , there are now multiple competitors in this space which are arguably doing a far better job than football index have in the last 6 months
they are losing market share rapidly and again its not an infinite pool of customers , most of which they have already burnt bridges with
on top of that they are clearly in some degree of financial distress
all of this does not paint a pretty picture.
I agree with many of your points. I don't agree on the financial aspect, as the less anecdotal evidence suggests that their position has been improving quite rapidly (hardly surprising given the removal of the IS liability).
FI's financial position is not really something that I lose any sleep about, I think that they probably make more during a downturn in OBs than they would during an upturn with the old IS.
What worries me is their ability to retain and attract big money. Everything points to the fact that they are aiming to attract HNWIs. I do not think IPDs would particularly have been of interest, so I do not see that as a loss in that sense, and perhaps the replacement will be more attractive - but there are some big red flags to anyone with big money looking at the platform from the outside and assessing risk.
The decision to remove the IPDs with 30 days notice is a PR disaster in my opinion. The removal of a win mechanism on 30 days notice is something that they will not be able to undo from their history. It would be a worry to read about, and I am sure if anyone checks trustpilot before committing their huge sums of money will be able to read about the times FI have changed the bet and worse, removed a win mechanism mid bet.
Those such as myself who are both financially and emotionally tied to the product in a significant way are left in a position of hope more than belief. We hope whatever FI does next will turn this shitshow around and we can breathe a sigh of relief for confirming our belief. However it has been so long since that belief has felt justified that hope has become my default emotion/port setting.
The hope for many including myself is that once these changes are done we can enjoy a period of sustained stability and organic growth. Whether that is delivered or not at this juncture is anyone's guess
If they suspended the app until covid free 21/22 season id be very happy to put it all on ice and reinvest a bit then.
I thought they where just stopp ing ipd not all dividend s
@Myles2521 They are. This was just hypothetical.
To be honest I'm just sitting tight so the removal of ipd is not the end of the world for me but it's a shit cunt move in just hoping Henderson starts for utd tomorrow