What happens on a share split?
Does every player price split into halves, quarters, or just a select few? What happened the last time?
Lat time they were split in 4
Adam Cole confirmed a share split will not happen at least until Xmas
Do we benefit from this ?? Can anyone explain the ins and outs?
@NewUser145896 As I understand, they essentially halve (or quarter) the price for futures in the player, and to offset any potential losses for those who already hold, multiply the futures they hold by 2, or 4. I'm not sure how they announce it, but i'd imagine via twitter or similar.
Personally, I think they should do it soon as new users are being put off buying the top players due to the huge prices. £13 for Neymar with 5p or 8p returns?
@NewUser145896 yeah everyone will benefit. Your volume of shares increase but the dividends reduce accordingly. However there is a huge psychological factor at play as to buy a future in a player suddenly appears more affordable to people. For example a dividend reduction by 4 would make a Paul Pogba of £11 today become £2.25 a share which is more attractive psychologically to buyers, What will happen is the prices will start to surge short term as a consequence and eventually get back to where they were but with dividends reduced they become less attractive commodities so give it time and a dividend increase will be the next logical eventual step after a share split. Basically for those in pre share split it's a very good thing! The only pisser is if you have say 1000 futures in a player and they split by 4, you then have to shift 4000 futures when its time to sell but you can't have it all I guess
This seems the perfect place to post this by Bishop from IndexGain: http://indexgain.co.uk/2018/09/07/what-is-the-football-index-share-split/
I'm pretty new to the index so I have missed any previous share splits. From what I am reading and from my understanding of a share split, if this does happen then we will all have our shares increased which will reduce the price of each of our players and as a result of this dividends will also be reduced. Am I on the right lines so far?
Then as the prices rise again through more people buying at a lower price and as prices rise high and the market stagnates due to higher prices then the dividends will be increased to boost the market.
Still on the right lines? Probably not aha.
@bouchet No that's exactly what they did. Effectively if you had bought 1 Neymar on day 1 of FI trading it would be worth £53.68 today - because of the 4x split. If only we'd all known about this earlier :-D
Just thinking about this. If FI did a share split, then would it not benefit the existing experienced users at the expense of new users. For example, if a split of 1/2 with the dividends halved as well, would all the experienced users not rush to buy Neymar, Pogba, Messi etc IPO style which would just increase prices again meaning new future users join with the top players priced highly but with half the dividends making the platform less appealing? £10-£13 per player with 2-3p dividends?
One option would be to reduce the amount of futures which can be purchased immediately after the split to prevent a rush? Same should most definitely be done for IPOs.
Also, not sure if FI listen to suggestions, but what do people think about the current MB and PB dividends structure? Seems PB is the most popular (and fun!!!) form of returns, so what if MB dividends were reduced by a larger amount and PB dividends kept the same? For example, no MB on PB days, or 1-2p per match day or double MB days instead of triple (with slightly reduced MB dividends) etc to offset. At least new users know its focused on solid performance data (like Fantasy Football).
The international break may not be the best time to suggest this but as you can guess, I'm not a fan of MB, but love the PB element and with the data available and the extra functionality on the new website, PB could be even more of a focus, so it would be a shame to reduce its appeal.
What do you think? Any die hard fans of MB?
@metropolis disagree. PB is turning into a bit of a lottery with so many eligible players. With only top 200 qualifying for MB I'm finding it a far easier and more reliable source of div income.
@NewUser162554 I'm not sure it is a lottery though. If you use a data pack, for example Noir's sheets, they show regular PB scores and you can base your purchases on this safe in the knowledge that they will very likely to continue to score highly and possibly return dividends over time. MB is the strange one for me. Often has no relation to performance and how successful the player is.
Or maybe I'm just bitter at missing out on Pobga??!! :)
@metropolis I think the key word there is 'possibly' return divs over time. There are so many more eligible players now that just takes one of them to have a PB blinder to trump yours. Pogba, meanwhile, is bound to return more divs in the next week (hope I haven't jinxed him...)