FI .. How much are they making.

  • I was just lying in bed last night, not for first time.. and wondering... All these thousands of people on FI and everybody is in plus, or at least everyone I've interacted with or read about, plus the fact that FI throw the money around with some promotional periods, some people here are 10's and 100's of grand in the green.... so how do FI manage this ??? Is the money we deposit actually only visually on the Index ? I mean is it in a kinda bank growing with interest as I write ?? Probably sound like an idiot writing this, but my knowledge is very low and would be great if someone with more knowledge could enlighten me 😁💪🏻

  • I'm aware they make 2% on all sales ... plus a whole lot more with instant sales

  • Would the account they hold all the money in be earning interest?? And is it offshore? I'm interested in this too.

  • I imagine the interest is HUUUUGE! Yes a lot of us are in the green but the money is in their bank account not ours so a nice chunk of interest there.

  • @B1992G I believe the legal mumbo jumbo says our deposits are keep in a "investment account" imagine if the money is put back into the index. lol

  • What were the laws about the money in our portfolios if FI crashes? Do we lose it or are we protected?

  • @AndyP32 Our deposits are in a different account from the companys trading account, BUT the most you would get back is your deposits NOT your deposits and profit. In reality you many get something back, but would be lucky if you got everything back and it would take awhile, wrost case our funds are massively miss managed and we get nothing.

  • On this topic. Help me out and go here on twitter and vote. I believe people have probably paid more in commission than they have made in dividends and if this is the case FI are making good money.

  • @Noirx4 Can't remember my twitter password. So i'll answer here. Dividends for me by a factor of 10. I'm very patience so I don't churn though players.

  • its tricky to say... if a 1k investment earns you £100 in dividends and within that you have a £1,500 portfolio but sell your players losing £100 in commission you've still made £400??? so whether you've 'made' in dividends or 'lost' in commission should be irrelevant? because of the grand scheme of things from your initial investment you're £400 UP!!!

    so on that basis... We've made money..... But how the hell have FI??????????

    I would guess that the sheer fact that 'WE' invest a lot of cash into FI but don't take out half as much is the reason why it works so well?

    On another note... I work in email marketing and with a HUGE database like FI have.. they can simply 'rent' that once a week to another betting company or sports promotion and that would earn thousands alone... it's amazing what you can do with someones email address (as the makers of facebook found out)!!!!

  • @dannypea let me break it down

    Every time football index take 2% that is money they are putting in the bank. Every time they give us dividends that is money we could extract without any cost most of us don't but we could.

    All "growth" is irrelevant to football index because of the following cycle

    Jeff buys neymar £2
    Lots of people buy neymar and his price go's to £10
    Bob buys neymar at £10

    Jeff makes £8. Bob has made nothing yet and football index are cost neutral. All sales of players effectively cost football index nothing because someone elss is paying for it.

    The only ways this is broken is the following:
    Dividends - fi lose money
    Deposit bonus - fi lose money
    Person accepts money back offer - fi lose money potentially depending on how this effects share price

    Commission - fi make money
    Spreads - fi make money
    Player removed from index - fi make money

  • i get that FI bank any commission and that makes sense... But where do they find the funds to pay dividends???

    i must admit i've scratched my head on this for months and discussed in pubs in the office and with friends on numerous occasions how it works but can't really understand it myself... My point is that 'if' i make more money in dividends and growth then I initially spend and with commission on top i don't really care about how much I pay them??

    Although I am keen to know how they can afford to do this? If they were using third parties to advertise for example it would make sense, in fact they are not.. and seem to be spending even more on the likes of Motson, Ballague & TalkSport which begs me to ask even further how can they afford to do???

    If i knew, I would probably invest even more because in not knowing, I'm often skeptical with the risks involved to put in bigger amounts!!!

  • @dannypea Monetisation strategy
    We believe our business model is significantly different from anything that has preceded it in the gambling sector. Please request a dedicated document that goes into this aspect of our business in more detail.

    In summary:
    Every Virtual Share in existence is a fixed odds bet that has been issued by us at whatever the purchase price was at the time of issue. We receive all that issue price as gross profit.

    From Gross Profit we deduct dividend payouts that will be due on that Share over time - an estimated 20%.

    15% Gambling Tax is due only on 'closed bets' (once a customer has sold his share and no longer holds it as an open bet) and where the customer 'loses' (ie sells his 'bet' for less than he bought it for). We estimate that no more than 5% gambling tax will be due in any month on Shares issued, as shares are generally held for a significant period and it's been very rare to date that they have been sold for less than the purchase price.

    It's important to point out that some shares purchased by Users have been 'pre-issued' and are currently held by another player, consequently the selling player receives the sale price and we receive only 2% trading commission. We only 'issue a new share' in response to 'excess demand' for that footballer (rather than excess supply).

    During the period of our Test Campaign 71% of Shares purchased were issued directly by us and were not offered for sale by Users in the market.

    Gross Gambling Yield (profit) on the £17bn bet on football this year is likely to be less than 4.5%. Our margin is demonstrably considerably higher than that figure.

    Our goal is to build a football stock market, with a market cap of £100m.

  • I short they create new shares and put aside money from that to pay dividends.

    Loads more info about user numbers ect in there early invesment sheets and data.

  • starting to make more sense!!! thank you!!!

  • If the investor info is right they have they have a £2.4 million marketing budget this year and £18.1 million in cash flow.

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