Is football index recession proof?



  • Any professional opinions out there?
    With a no deal brexit a possibility and uncertain economics times ahead. Just how safe is investment in football index. More so as futures are virtual or less so???



  • 'IF' for example there was another recession and people 'felt the pinch' then I'm sure they would start taking out their investments in FI as the 'extra cash' that they had profited on would probably be needed for other (more important) things???

    But then who got hit in the last recession? investors yes, but general public also? savvy investors continued to invest and it was in fact those who brought in to the property market (at preferential rates) that perhaps got us out the recession? In my opinion...

    So is FI recession proof?? Perhaps not... Because like the stock markets we are not investing in bricks and mortar or in anything that holds any asset value other than gambling on players performance and hype with other market players within the structure?

    Another theory though is that rather than have 'all funds' tied up in banks during potential tough times.. spreading the risk in stocks and shares, other assets, bet accounts and of course FI might not be a bad thing???

    Suppose the biggest is risk is that people with 'less money' will spend less on investing & gambling??



  • A bigger worry is the financial security of the company itself. If it goes bust we all totally lose our investments. Hence, the advice is to only invest what you can afford to lose.



  • @NewUser156205 said in Is football index recession proof?:

    A bigger worry is the financial security of the company itself. If it goes bust we all totally lose our investments. Hence, the advice is to only invest what you can afford to lose.

    Is this true though? I agree that we're all at risk of losing everything if the Index goes bust, but my understanding is that gambling companies have to state what their level of protection on our money is, out of basic, medium and high. From what I can see in the terms and conditions, FI have a 'medium' level, which, according to the Gambling Commission is:

    'There are arrangements (eg insurance) to make sure that the money in separate accounts is given to customers if the company goes bust.'

    So not the same level as protection as £85k in a FSCS company, but also not guaranteed we'd get nothing back.

    Not for a minute suggesting our money is safe with FI but I would be interested to know what 'medium' constitutes (if I've even understood correctly that is). Seems a bit dodgy that gambling companies can set their own definition on what 'basic', 'medium' and 'high' are.

    Anyone with anymore knowledge care to weigh in?



  • This might help, if they go bust you will likely get some money back, but not it all. Of course this would only be your deposits not any profit made on the index.

    https://www.gamblingcommission.gov.uk/for-the-public/Your-rights/Protection-of-customer-funds.aspx



  • Interesting thread, as I think it tackles the no.1 fear of investing in FI. If they go bust do we lose everything? I think it wouldn’t hurt if Adam and the boys in football towers came out and explained a little more exactly how protected our money is should things go belly up. It’s in their interests- reassured customers would equal more investment and larger growth all round.



  • @Valhalla they choose to register in jersey where they do not have to publish financial info about the company. I understand the lower taxes issue but they really should not hide their financial performance. It definitely restricts how much I am prepared to invest



  • @NewUser156205 exactly. Secrecy doesn’t foster confidence.


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