How can football index afford to pay these dividends?

  • How can football index afford to pay what essentially amounts to around 20-30% annualised return on a well constructed portfolio. Are they really making that much off the clients that trade badly to pay the buy and hold investors? Or are they recieving advertising money from somewhere?

  • Exactly. And as people wise up they will make less. For anyone to make money at this someone has to lose more.
    I started a similar thread. As the owners wise up they will find ways of taking back. If they see people with a system they will find a way of stopping it. Theyve now stopped you trading your way up by introducing a massive pool of players making it harder to cash in and sell.
    Its all very well those guys on 250k or 90k portfolios but if you cant sell them easy you could lose a lot.
    I think the easy ride has finished now, gone are the days of making regular profit on here.

  • The huge influx of IPO players is going to make it harder to win PBs so those payouts will presumably reduce

    Having said that it's standard practice for internet companies to make losses to attract new users while they scale up the business and establish a dominant/monopoly position in the market

    Presumably at some stage FI's owners/investors will start prioritising profit over growth with a view to floating the company

    Probably also worth mentioning that while many companies struggle with cashflow FI holds our deposits - there might be legal restrictions on using those deposits to pay dividends but if not that's where the cash is coming from

  • @NewUser85470

    Nahh, they don't need people to lose. They need people to trade. If the index keeps going up and everyone profits with it that's fine for them. They just need lower overall dividends, which will happen with the IPOs, and liquidity and will to trade, less clear

    And the IPOs will be growing their capital

  • @NewUser85470 you are totaly wrong. FI will grow further and the community will get larger and larger, so always more and more money will flow in. So i wrote some months ago that everyone with a deposit of more than 5000 gbp will get rich soon. Cause the potential for FI is nearly unlimited... they can further increase dividends and so on. Now i estimate about 20000 people use FI. Imagine one or two million people using FI. But thats all just my opinion....

  • @NewUser38991 think you'll find that's a pyramid scheme.

  • Fair point about gaining market share and I guess they will need to raise money again at some point. Once the prices rise enough and dividends are reduced to 3-5% it should be easy for FI to manage that from the trading income.

    I'm not so much interested in performance dividends - a few players Messi, Stones, Ronaldo etc should be able to chalk up a few PBS but with so many players now it's too unpredictable. Media buzz is really limited to the top 20 or so players though and still provides a multiple return of any other asset class im invested in atm.

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